Increasing competitiveness of third party logistics with RFID

Competition in the 3PL market continues to intensify as providers compete to win and retain clients. 3PL providers are required to reduce costs while offering tailored innovative logistical solutions in order to remain competitive. 3PL providers can reduce costs through the consolidation of assets and introduction of cross-docking activities. Innovative logistical services can be tailored to each client via the introduction of real-time data updates. This paper highlights that RFID enabled RTE can assist in improvements of both these areas through increased network visibility. A framework is presented where the 3PL provider focuses on asset reduction, asset utilisation, real-time data employment and RTE cycle time reduction in order to enhance competitiveness. © 2011 IEEE.

The role of third party logistics providers (3PLs) in the adoption of green supply chain initiatives

The increasing importance of environmental sustainability has sharpened the focus on the need for innovative approaches to the purchasing of transport and logistics services. This article points out some of the challenges that purchasers of transport and logistics services, as well as their suppliers in the third party logistics (3PL) industry, are facing. These include the need for closer collaboration between 3PLs and their customers, as well as developing systems for the robust assessment of the environmental sustainability of services. The article is based on several years’ research experience in Ireland, Italy and Sweden.

Evaluating the use of IT by the third party logistics in South East Asia to achieve competitive advantage and its future trend

As the number of using 3PL providers are increasing rapidly in recent years, 3PL providers play a major role in the logistics industry. Due to customers demands are raising and changing, it has facilitated 3PL providers to invest IT systems that could meet customer requirements and create competitive advantage. The use of IT systems could assist 3PL providers to achieve supply chain visibility and enhance supply chain collaboration with business partners. In this paper, it is mainly focus on the Europe and Far East 3PL providers in terms of current and future IT systems, IT motivators and barriers, as well as the future supply chain demands that address by IT systems. The common IT system that implemented in both regions is information technology, which is mainly used to collaborate and share information with supply chain partners. Some of the common motivations and barriers were existed and 3PL providers need to be understood. Given the future demands of IT implementation and supply chain collaboration, IT systems such as RFID and integration systems would be strongly focus in the future. The suggestion about the advanced integration system such as business process management (BPM) could be the next key IT systems in the future logistics industry. © 2012 AICIT.

From 3LSP (Third Party Logistics Service Provider) to 4LSP (Fourth Party Logistics Service Provider):a case study from Ireland

Increased competition, geographically expanded marketplaces, technology replication and an ever discerning consumer base, are reasons why companies need to regularly reappraise their competencies in terms of activities and functions they perform themselves. Where viable alternatives exist, companies should consider outsourcing of non-core activities and functions. Within SCM (Supply Chain Management) it could be preferable if a “one stop shop” existed for companies seeking to outsource functions identified as non-core. “Traditionally” structured LSP’s who have concentrated their service offer around providing warehousing and transport activities are potentially at a crossroads – clients and potential clients requiring “new” services which could increase LSP’s revenues if provided, whilst failure to provide could perhaps result in clients seeking outsourced services elsewhere.

Strategic logistics outsourcing:an integrated QFD and fuzzy AHP approach

This paper develops an integratedapproach, combining quality function deployment (QFD), fuzzy set theory, and analytic hierarchy process (AHP) approach, to evaluate and select the optimal third-party logistics service providers (3PLs). In the approach, multiple evaluating criteria are derived from the requirements of company stakeholders using a series of house of quality (HOQ). The importance of evaluating criteria is prioritized with respect to the degree of achieving the stakeholder requirements using fuzzyAHP. Based on the ranked criteria, alternative 3PLs are evaluated and compared with each other using fuzzyAHP again to make an optimal selection. The effectiveness of proposed approach is demonstrated by applying it to a Hong Kong based enterprise that supplies hard disk components. The proposed integratedapproach outperforms the existing approaches because the outsourcing strategy and 3PLs selection are derived from the corporate/business strategy.

Strategic logistics outsourcing: an integrated QFD and AHP approach

Third-party logistics service providers (3PLs) play a vital role in contemporary supply chain management. Evaluation and selection of the right 3PLs depends on a wide range of quantitative and qualitative criteria rather than cost-based factors. Although various multi-criteria decision making approaches have been proposed, they have not considered the impact of business objectives and requirements of company stakeholders on the evaluating criteria. To enable the "voice" of company stakeholders is considered, this paper develops an integrated approach for selecting 3PL strategically. In the approach, multiple evaluating criteria are derived from the requirements of company stakeholders using a series of house of quality (HOQ). The importance of evaluating criteria is prioritized with respect to the degree of achieving the stakeholder requirements using analytic hierarchy process (AHP). Based on the ranked criteria, alternative 3PLs are evaluated and compared with each other using AHP again to make an optimal selection.

Technology adoption in small and medium-sized logistics providers

Purpose - The main aim of the research is to shed light on the role of information and communication technology (ICT) in the logistics innovation process of small and medium-sized third party logistics providers (3PLs). Design/methodology/approach - A triangulated research strategy was designed using a combination of quantitative and qualitative methods. The former involved the use of a questionnaire survey of small and medium-sized Italian 3PLs with 153 usable responses received. The latter comprised a series of focus groups and the use of seven case studies. Findings - There is a relatively low level of ICT expenditure with few companies adopting formal technology investment strategies. The findings highlight the strategic importance of supply chain integration for 3PLs with companies that have embarked on an expansion of their service portfolios showing a higher level of both ICT usage and information integration. Lack of technology skills in the workforce is a major constraint on ICT adoption. Given the proliferation of logistics-related ICT tools and applications in recent years it has been difficult for small and medium-sized 3PLs to select appropriate applications. Research limitations/implications - The paper provides practical guidelines to researchers in the effective use of mixed-methods research based on the concept of methodological triangulation. In particular, it shows how questionnaire surveys, focus groups and case study analysis can be used in combination to provide insights into multi-faceted supply chain phenomena. It also identifies several potentially fruitful avenues for future research in this specific field. Practical implications - The paper's findings provide useful guidance for practitioners on the effective adoption of ICT as part of the logistics innovation process. The findings also provide support for ICT vendors in the design of ICT solutions that are aligned to the needs of small 3PLs. Originality/value - There is currently a paucity of research into the drivers and inhibitors of ICT in the innovation processes of small and medium-sized 3PLs. This paper fills this gap by exploring the issue using a range of complementary research approaches. Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.

Purchasing green transport and logistics services:implications from the environmental sustainability attitude of 3PLs

Environmental sustainability is an area of increasing importance for third party logistics (3PL) companies. As the design and implementation of services requires interaction between buyer and 3PL, the 3PLs are in a critical position to support the efforts towards greening operations of different supply chain participants. However the literature in this field reflects a gap between the perspectives of buyers and 3PLs. This chapter attempts to fill this void through an explorative case study analysis on the environmental attitude of 3PLs in order to derive implications for buyers’ behavior. The results indicate that the buyer’s role is critical in different ways in the development of green initiatives among 3PLs. An increased orientation towards longer-term contracts and joint development would likely enhance the level of green initiatives. Indirectly, the buyer has the opportunity to influence its 3PLs through interaction with employees on different levels in the company, including top management.

ICT innovation diffusion in small logistics service providers:an empirical study

For companies competing in highly dynamic markets, innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins, sales growth and reduce competitors’ pressures. Information and communication technology (ICT) is essential innovation enablers especially in service companies. The focus of the paper is on the analysis of the role of ICT in innovation processes of small third-party logistics service providers (3PLs). On the basis of quantitative evidence emerging from a recent survey carried out on the Italian 3PL market, the paper analyses how ICT is used to support innovation and the factors the inhibit/facilitate the usage of ICT in such companies. Implications for supply chain innovation management are derived from the research and managerial perspectives.

The role of information and communication technology in small Italian logistics enterprises

Information and Communications Technology (ICT) is widely regarded as a key integration enabler in contemporary supply chain configurations. Furthermore, recent years have seen the vertical disintegration of supply chains as increasing numbers of manufacturers and retailers outsource significant parts of their supply chain functionality. In this environment, Third Party Logistics (3PL) providers - the majority of which are small companies - play a pivotal role. This raises important questions about the usage of ICT in this sector. However, there is a paucity of research in the field of small 3PLs with little empirical investigation into the usage of ICT by such firms. This paper presents the results of a survey on ICT systems usage in a sample of small Italian 3PLs. The results provide a technological profile of the surveyed companies, as well as an analysis of the role of ICT in customising services and of the factors influencing technology adoption.

A case study analysis on information and communication technology usage in small logistics service companies

The impact of ICT (information and communications technology) on the logistics service industry is reshaping its organisation and structure. Within this process, the nature of changes resulting from ICT dissemination in small 3PLs (third party logistics providers) is still unclear, although a large number of logistics service markets, especially in the EU context, are populated by a high number of small 3PLs. In addition, there is still a gap in the literature where the role of technological capability in small 3PLs is seriously underestimated. This gives rise to the need to develop investigation in this area. The paper presents the preliminary results of a case study analysis on ICT usage in a sample of 7 small Italian 3PLs. The results highlight some of the barriers to effective ICT implementation, as well as some of the critical success factors.

Logistics Innovation in Small 3PLs:what is the Role of ICT?

For companies competing in highly dynamic markets, the search for new sources of competitive advantages is mandatory. Innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins and sales growth and to reduce pressures coming from competitors. In the knowledge-driven economy, information and communication technology (ICT) plays an important role as it enables innovation in product/service, processes and organisations especially in service companies. This paper investigates the role of ICT in logistics innovation. The focus of the paper is on the effects that ICT usage is having on the management of small third-party logistics service providers (3PLs). On the basis of quantitative and qualitative evidence emerging from a recent survey carried out on the Italian logistic service market, the paper analyses how ICT is used to support logistics innovation and the factors inhibiting/facilitate the usage of ICT in such companies. Implications for logistics innovation management will be outlined from both research and managerial perspectives.

An exploratory study of ICT usage in small logistics service providers

Information and communication technology (ICT) developments have strongly affected supply chain management (SCM) in recent years. ICT has had a great impact on all supply chain processes including planning, purchasing, production management, stock management, physical distribution and related integration management. Technology has become an important dimension of third party logistics (3PL) service supply as competitive advantage increasingly depends on the ability to create value for customers through the effective application of ICT. Within this process, while large 3PLs are gaining substantial benefits from technology usage and implementation, the magnitude of changes spurred by ICT dissemination in small logistics service providers remains unclear. This is reflected by the existing gap in literature where the role and competitive developing processes of small 3PLs are seriously underestimated. This gives rise to the need to develop research and investigation in this particular area. The objective of this paper is to narrow the knowledge gap in the field of ICT adoption in small 3PLs through an empirical investigation. It presents the results of a survey on a sample of small Italian 3PLs.

Purchasing green transport and logistics services:implications from the environmental sustainability attitude of 3PLs

Environmental sustainability is an area of increasing importance for third party logistics (3PL) companies. As the design and implementation of services requires interaction between buyer and 3PL, the 3PLs are in a critical position to support the efforts towards greening operations of different supply chain participants. However the literature in this field reflects a gap between the perspectives of buyers and 3PLs. This chapter attempts to fill this void through an explorative case study analysis on the environmental attitude of 3PLs in order to derive implications for buyers’ behavior. The results indicate that the buyer’s role is critical in different ways in the development of green initiatives among 3PLs. An increased orientation towards longer-term contracts and joint development would likely enhance the level of green initiatives. Indirectly, the buyer has the opportunity to influence its 3PLs through interaction with employees on different levels in the company, including top management.

ICT adoption by logistics service providers:developing a learning agenda

Recent years have seen innovations in the logistics and freight transport industry in relation to Information and communication technologies (ICT) diffusion. The implementation of such technologies by third party logistics providers (3PLs) allows the real-time exchange of information between supply chain partners, thereby improving planning capability and customer service. However, the logistics and freight transport industry is lagging somewhat behind other sectors in ICT diffusion. In relation to the latter point, it is important to note that the dissemination of ICT in logistics and supply chain management (SCM) is shifting the 3PL industry to an increasingly knowledge-intensive approach. In this process, the role of learning becomes more central and an assessment of the impact of future ICT learning needs for the logistics providers is a strategic imperative. The aim of this paper is to assess the impact of ICT on logistics and freight transport industry in Italy and Ireland, and to identify learning needs for more effective ICT adoption in 3PLs.