Types of logistics outsourcing and related impact on the 3PL buying process: empirical evidence

Abstract

Although logistics outsourcing is recognised as a competitive parameter, so far there has been no adequate research on the types of logistics outsourcing and their implications in terms of the third-party logistics (3PL) buying process. This paper fills the gap by focussing on two key issues, i.e., required competitive advantages and 3PL selection criteria. The aim is to provide a comprehensive investigation of such factors and study if and how they vary depending on the outsourcing type. After a literature review and a focus group, a survey of 482 logistics managers was conducted, and a statistical analysis of results was performed. The findings are of interest to both shippers and 3PL providers because they help the former understand which outsourcing type is the most suitable to achieve the desired competitive advantages, and the latter to evaluate the key factors to focus on depending on the required type of outsourcing.

Current and Future Trends of Information Technology and Sustainability in Logistics Outsourcing

“…LSPs work across a range of industries and can be classified as (1) standard service providers, which provide basic services such as transportation; (2) service developers offering additional value-added activities such as track and trace and security; (3) customer adapters, offering customized logistics services; and (4) customer developers who usually redesign customer logistics solutions to meet their efficient processes [26]. As such, logistics outsourcing allows the host enterprises to focus on core business, reduce logistics costs, improve service levels, and increase the satisfaction of their clients by using LSPs (also known as third parties) [27,28]. Logistics outsourcing can help enterprises improve their operations due to the efficiency of LSPs, thus developing the competitiveness of shippers [29].…”

“…The selection of LSPs is an important step in the outsourcing process. The selection needs scrutiny to ensure that the selected LSPs' business model will support the objectives of the client organization; otherwise, there will be failure [28]. Prior research reveals that hierarchical techniques optimize the LSP selection process [19].…”

“…LSPs are also expected to offer efficient operations, real-time decision-making, and alignment with the client firm's strategic logistics business goals [21]. In addition, due to the increased importance of sustainability and technology in logistics, LSPs are expected to possess sustainability capabilities, including reverse logistics and information technologies that offer real-time information sharing to enhance logistics efficiencies [28].…”

“…From a logistics outsourcing perspective, users of logistics services would prefer to outsource their logistics services to LSPs who practice and have elaborate reverse logistics capabilities to help them achieve their sustainability goals as part of the circular economy objective [8]. Therefore, reverse logistics is being implemented currently and remains an important aspect of logistics outsourcing in the future [8,28].…”

Designing global trade and logistics channels: a focus on the Chinese food and beverage market

“…For example, products' shelf life introduces legal obliges to keep temperature-controlled supply chains (Abukhader and Jonson, 2007;Lorentz et al, 2013;Gallo et al, 2017;Ali et al, 2018). Along with product perishability or rapid delivery requirements, it can heavily affect LC design, including the relationships with LSPs (van Hoek, 1999;Marchet et al, 2018) and the transport mode choice (Harris et al, 2018). This latter is also highly dependent on the product volume density, as the ratio between the product weight and the space occupied can lead towards alternative transport solutions (Zeng and Rossetti, 2003;Creazza et al, 2010).…”