The Emerging Role of the Third-Party Logistics Provider (3PL) as an Orchestrator

Abstract

The connectivity and communication requirements of leading supply chains have created the emergence of a more advanced role for third-party logistics providers 3PLs. They have evolved from providing logistics capabilities to becoming orchestrators of supply chains that create and sustain a competitive advantage. This article uses a theoretical perspective based on resource-based theory, network theory and transaction cost economics, and a thorough literature review, to develop a model with seven propositions. Finally, using structured interviews of industry executives from a leading 3PL, we offer empirical support for the model and propositions that can be used to define the orchestrator role of a 3PL.