Third party logistics services usage by large Australian firms

Abstract

Provides information relating to the experiences of Australian firms using third party logistics services (outsourcing of logistics functions being a business dynamic of growing importance in Australia). Presents conclusions from a survey showing that many of Australia’s largest firms utilize the services of contract logistics providers and some other firms are considering doing so. Provides insights in planning for implementation, for example, the need to educate the third party logistics services provider about the firm’s requirements and also information for the providers of the services.

Organizational participants in the make-or-buy process

“…This sample was drawn from a population of 580 industrial firms listed in the Annual Census of Greek Industry. This sample size compares favorably with the size of the sample in other studies (Dapiran et al, 1996;Jackson, Neidell, & Lunsford, 1995;Lysonski, Levas, & Lavenka, 1995;Morris et al, 1995).…”

“…Typical examples include marketing, information technology, legal, accounting, insurance, personnel, quality control, cleaning, security, and maintenance (Anderson & Weitz, 1986;Bryce & Bryce, 1987;Fields, 1995;Kent, 1996;Lacity, Willcocks, & Feeny, 1995;Leenders & Nollet, 1984;Lodish, 1983;Seaman, 1980;Smith, 1996). The evolution of third party logistics providers (3PLs) has led companies to investigate the make-or-buy dilemma in logistics services (Bhatnagar, Sohal, & Millen, 1999;Dapiran, Lieb, Millen, & Sohal, 1996;Laarhoven, van Berglund, & Melvyn, 2000;Lieb & Randall, 1996). The basic conclusion derived from these studies is that there is an ever-increasing trend for outsourcing logistics services, due to the variety of functions (e.g., carrier selection, warehousing, product returns, order fulfillment) performed by the 3PLs, the significant cost reduction and the improvement in customer service.…”

Increasing competitiveness of third party logistics with RFID

“…One study highlighted that from the perspective of a 3PL provider, the economies of scale gained through the utilisation of consolidation centres can help to achieve up to a 6.7% reduction in total cost savings [39]. The 3PL provider can use their expertise of managing high asset based networks to reduce and utilise the assets in order to reduce overall operating costs, passing these savings onto their clients at lower rates than the clients would be able to achieve in-house [1,[40][41][42]. In the network illustrated in Fig.…”

“…Nowadays, as the number of firms outsourcing logistics activities increases, the competition between third party logistics (3PL) providers continues to intensify [1,2]. In order for 3PL providers to remain competitive they need to be able to adapt quickly to changing client's needs whilst offering tailored services at a cost competitive price [3,4].…”

Evaluation of Third Party Logistics Providers Considering Social Sustainability

“…By investigating 131 firms, Fawcett and Smith [24] identified the following 5 criteria: quality, delivery, flexibility, cost, and innovation in services. Following their exploratory studies of Australian firms, Dapiran et al [25] and Millen et al [26] argued that cost is the most important criteria. Murphy and Daley [27] summarized 12 criteria for international freight forwarders selection as follows: expertise, reliability, ability to provide relevant information, attention, reputation, price, financial condition, convenience of use, services, geographical specialization, product specialization, and size.…”