Evaluating the Supply Chain Role of Logistics Service Providers

TLDR

The shift from traditional third‑party logistics to comprehensive supply‑chain relationships has significant implications for the role of third‑party logistics service providers. This study extends prior work by assessing the varying roles that third‑party logistics service providers can play within the supply chain. The assessment evaluates four factors—strategic orientation of the outsourcing organization, its perception of 3PL roles, the nature of the client‑3PL relationship, and the extent of logistics outsourcing—using case‑study research. The analysis identifies distinct 3PL roles, both conceptual and empirical, and offers practical implementation implications.

Abstract

The shift from traditional and functional third‐party logistics to comprehensive supply‐chain relationships has significant implications for the role of third‐party logistics service providers (3pls). Extending previous research in which four factors were found to influence 3pls' supply chain function, this paper contains an assessment of the varying role(s) 3pls can play in the supply chain. The factors include: the strategic orientation of the outsourcing organization; its perception of 3pls' roles within the logistics strategy; the nature of the resultant client‐3pl relationship; and, the extent to which logistics is outsourced. The supply chain impact of these factors are evaluated based on the findings from case study research. Each different 3pl role (conceptual and empirical) is examined and implications for practical implementation are provided.