Third-Party Logistics (3PL) and Supply Chain Performance in the Chinese Market: A Conceptual Framework

TLDR

Supply chains are increasingly international and sophisticated, with competition shifting from firms to supply chains, and third‑party logistics (3PL) can reduce costs and lead times, yet research on 3PL’s role in China remains limited. This study proposes a conceptual framework to leverage third‑party logistics for improving supply chain performance in the Chinese market. It pioneers a conceptual model linking 3PL to supply chain performance, laying the groundwork for future empirical testing in China.

Abstract

Supply chains are becoming more international and sophisticated. With the globalization of businesses, competition between enterprises has evolved to competition between supply chains. The development of third party logistics (3PL) service can help supply chain to achieve cost reduction and shorten lead time simultaneously. For this reason, third party logistics has been integrated into supply chain to enhance supply chain performance. However, we notice that not only is the research on China's 3PL still in its infancy, but also the role of 3PL in supply chain is not well examined from the Chinese market perspective. The intent of this study is to fill the void by providing a framework addressing how to leverage third-party logistics to improve supply chain performance in the Chinese market. The intended contribution of this study is that we hope our research constitutes a pioneer study that conceptually addresses the relationship between 3PL and supply chain performance, upon which data from the Chinese market can be tested.