Influence of 3PL service offerings on client performance in India

This paper examines, in the context of outsourcing, the effects of improving the performance indicators of a client to the services offered by a 3PL provider. A research model has been developed and four research hypotheses are analyzed empirically using multiple regression analysis. The results point out that there is a positive influence in the performance indicators for clients who are in association with a 3PL provider. It is proved that the clients distinguish a 3PL provider as providing them with a potential pathway to a more innovative business model. The theoretical, managerial and research implications are also highlighted.

[1]  M. A. Mcginnis,et al.  A FACTOR ANALYTIC STUDY OF LOGISTICS STRATEGY , 1990 .

[2]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[3]  Amrik S. Sohal,et al.  The use of third party logistics services: a Malaysian perspective , 2003 .

[4]  John E. Ettlie,et al.  Manufacturing strategy : the research agenda for the next decade , 1990 .

[5]  H. L. Sink,et al.  A MANAGERIAL FRAMEWORK FOR THE ACQUISITION OF THIRD-PARTY LOGISTICS SERVICES. , 1997 .

[6]  Mark Goh,et al.  Logistics management practices and development in Thailand , 1998 .

[7]  Robert Millen,et al.  Third Party Logistics Services: A Comparison of Experienced American and European Manufacturers , 1993 .

[8]  Chee-Chuong Sum,et al.  A taxonomy of manufacturing strategies in China , 2006 .

[9]  L. Cronbach Coefficient alpha and the internal structure of tests , 1951 .

[10]  Zillur Rahman Use of Internet in supply chain management: a study of Indian companies , 2004, Ind. Manag. Data Syst..

[11]  Richard Wilding,et al.  Customer perceptions on logistics outsourcing in the European consumer goods industry , 2004 .

[12]  Jae‐Il Kim Logistics in Korea: current state and future directions , 1996 .

[13]  Kenneth B. Ackerman,et al.  Pitfalls in logistics partnerships , 1996 .

[14]  Randi Priluck,et al.  Relationship marketing can mitigate product and service failures , 2003 .

[15]  R. Lissitz,et al.  Effect of the number of scale points on reliability: A Monte Carlo approach. , 1975 .

[16]  Ronald H. Ballou HEURISTICS : RULES OF THUMB FOR LOGISTICS DECISION MAKING , 1989 .

[17]  P. Nagel,et al.  Logistics Trends in South Africa , 1994 .

[18]  Steve Brown,et al.  The contribution of manufacturing strategy involvement and alignment to world-class manufacturing performance , 2007 .

[19]  A. Roth,et al.  Manufacturing Strategy, Manufacturing Strength, Managerial Success, and Economic Outcomes , 1990 .

[20]  D. Kritchanchai,et al.  An information technology implementation framework for the logistics industry in Singapore , 2006 .

[21]  B. S. Sahay,et al.  3PL practices: an Indian perspective , 2006 .

[22]  A. Chin,et al.  Logistics outsourcing by manufacturers in China: A survey of the industry , 2004 .

[23]  Umit S. Bititci,et al.  Dynamics of performance measurement systems , 2000, APMS.

[24]  Mark Goh,et al.  Logistics development in China , 2003 .

[25]  S. Wheelwright,et al.  Restoring Our Competitive Edge: Competing Through Manufacturing , 1984 .

[26]  A. Narayanan Probability and statistics in engineering and management science , 1972 .

[27]  S. Kendrick,et al.  The Use of Third-Party Logistics Services by Large American Manufacturers, the 2002 Survey , 2002, Transportation Journal.

[28]  P. K. Bagchi,et al.  LOGISTICAL ALLIANCES -- TRENDS AND PROSPECTS IN INTEGRATED EUROPE. , 1998 .

[29]  James S. Boles,et al.  Business relationships: an examination of the effects of buyer‐salesperson relationships on customer retention and willingness to refer and recommend , 1997 .

[30]  Ram Narasimhan,et al.  An empirical investigation of the antecedents and consequences of manufacturing goal achievement in North American, European and Pan Pacific firms , 1998 .

[31]  M. Christopher,et al.  An Integrated Model for the Design of Agile Supply Chains. , 2001 .

[32]  Noel P. Greis,et al.  Logistics, strategy and structure , 2013 .

[33]  P. Murphy,et al.  Is the glass half full or half empty , 2005 .

[34]  J. Hair Multivariate data analysis , 1972 .

[35]  D. Bowersox Logistical excellence : it's not business as usual , 1992 .

[36]  A. Batra India's Global Trade Potential: The Gravity Model Approach , 2006 .

[37]  Luitzen de Boer,et al.  A survey of third party logistics in Mexico and a comparison with reports on Europe and USA , 2006 .

[38]  L. Sprague,et al.  The role of customer relationships in the growth of small‐ to medium‐sized manufacturers , 2001 .

[39]  M. S. Sohail,et al.  The Usage of Third Party Logistics in Saudi Arabia Current Position and Future Prospects , 2005 .

[40]  A. Chin,et al.  Firm‐specific characteristics and logistics outsourcing by Chinese manufacturers , 2004 .

[41]  Amrik S. Sohal,et al.  Third party logistics services: a Singapore perspective , 1999 .

[42]  D. Lambert,et al.  Issues in Supply Chain Management , 2000 .

[43]  Patricia J. Daugherty,et al.  JIT Systems and External Logistics Suppliers , 1994 .

[44]  Kenneth B. Ackerman,et al.  SELECTION CRITERIA FOR PROVIDERS OF THIRD-PARTY LOGISTICS SERVICES: AN EXPLORATORY STUDY , 1998 .

[45]  P. Murphy,et al.  Profiling international freight forwarders: an update , 2001 .

[46]  Syed Aziz Anwar,et al.  Logistics Outsourcing in the United Arab Emirates , 2005 .

[47]  Thomas J. Goldsby,et al.  LOGISTICS SERVICE PERFORMANCE: ESTIMATING ITS INFLUENCE ON MARKET SHARE , 2003 .

[48]  I. Petrov,et al.  Logistics in Bulgaria: Concepts for New Market Expansion , 1994 .

[49]  G. Stewart Supply chain performance benchmarking study reveals keys to supply chain excellence , 1995 .

[50]  T. Skjoett‐Larsen,et al.  Third party logistics – from an interorganizational point of view , 2000 .

[51]  Paul D. Larson,et al.  Logistics in Denmark: A Survey of the Industry , 2001 .

[52]  M. S. Sohail,et al.  The usage of third party logistics in Saudi Arabia , 2005 .

[53]  Füsun Ülengin,et al.  Outsourcing logistics activities in Turkey , 2005, J. Enterp. Inf. Manag..

[54]  Jan B. Heide,et al.  Relationship Governance in a Supply Chain Network , 2004 .

[55]  J. Sankaran,et al.  Effective logistics outsourcing in New Zealand , 2002 .

[56]  Barton A. Weitz,et al.  Relationship marketing and distribution channels , 1995 .

[57]  Patricia J. Daugherty,et al.  Third-Party Logistics Service Providers: Purchasers’ Perceptions , 1996 .

[58]  T. Corsi,et al.  Adopting new technologies for supply chain management , 2003 .

[59]  Amrik S. Sohal,et al.  Third party logistics services usage by large Australian firms , 1996 .

[60]  Da Dick van Damme,et al.  Outsourcing Logistics Management Activities , 1996 .

[61]  Andy Neely,et al.  Performance measurement system design , 1995 .

[62]  Robert C Lieb,et al.  A COMPARISON OF THE USE OF THIRD-PARTY LOGISTICS SERVICES BY LARGE AMERICAN MANUFACTURERS, 1991, 1994, 1995 AND 1996. , 1996 .

[63]  Helen L. Richardson LOGISTICS HELP FOR THE CHALLENGED , 1995 .

[64]  J. O. Miller,et al.  The Use of Third-party Logistics Services by Large US Manufacturers, The 2000 Survey , 2002 .

[65]  Joel D. Nicholson,et al.  Strategic alliances in logistics outsourcing , 2000 .

[66]  Paul R. Murphy,et al.  THIRD-PARTY LOGISTICS: SOME USER VERSUS PROVIDER PERSPECTIVES. , 2000 .

[67]  Lawrence R. Klein An Introduction To Econometrics , 1962 .

[68]  JoAnn Greco CORPORATE HOME SCHOOLING , 1997 .

[69]  R C Lieb,et al.  THE YEAR 2002 SURVEY : CEO PERSPECTIVES ON THE CURRENT STATUS AND FUTURE PROSPECTS OF THE THIRD-PARTY LOGISTICS INDUSTRY IN THE UNITED STATES , 2003 .

[70]  M. Tracey,et al.  Transportation Outsourcing: A Survey of US Practices , 1991 .

[71]  Anu Bask,et al.  Relationships among TPL providers and members of supply chains – a strategic perspective , 2001 .

[72]  James Aaron Cooke,et al.  TO OUTSOURCE OR NOT TO OUTSOURCE , 1998 .

[73]  A. Neely,et al.  Measuring performance in a changing business environment , 2003 .

[74]  Theodore P. Stank,et al.  Interactions between operational and relational capabilities in fast food service delivery , 2003 .

[75]  Diane A. Mollenkopf,et al.  World‐class logistics: Australia and New Zealand , 2005 .

[76]  Rohit Bhatnagar,et al.  Re‐engineering global supply chains: Alliances between manufacturing firms and global logistics services providers , 2000 .

[77]  Umit Bititci,et al.  Dynamics of performance measurement systems , 2000 .

[78]  Dinesh Kumar,et al.  Modeling the logistics outsourcing relationship variables to enhance shippers' productivity and competitiveness in logistical supply chain , 2007 .

[79]  JoAnn Greco OUTSOURCING:: THE NEW PARTNERSHIP , 1997 .

[80]  Mark Goh,et al.  Some logistics realities in Indochina , 2000 .

[81]  Kenneth K. Boyer,et al.  COMPETITIVE PRIORITIES: INVESTIGATING THE NEED FOR TRADE‐OFFS IN OPERATIONS STRATEGY , 2002 .

[82]  Ian P. McCarthy,et al.  Manufacturing classification: Lessons from organizational systematics and biological taxonomy , 1995 .