A STUDY OF THIRD PARTY STRATEGIES PROVIDERS AND

USERS

Doctor S. Samar Ali,

Associate Professor: Functions & Strategies Management *

JK Organization School, Damdama Lake Road, Bhondsi, Gurgaon 122102, India Telephone: +91-9971876017, Email address: [email protected] com

SUBJECTIVE

Third party strategies (3PL) has become gaining importance in most places in the world. The implementation of 3PL methods is just beginning and appearing effectively. This kind of paper looks at the American indian 3 PL Supply Chain Management and practices according to key accomplishment factors and growth strategies. After determining the critical success elements SERVQUAL can be applied to reveal the gap between their very own achievement and expectation. Participants to the study are labeled based on their particular rating of the key growth strategies on such basis as AHP.

Keywords: 3PL; 3rd party Logistics Services; India; Factor Analysis; SERVQUAL; AHP

1 . Introduction

Because conditions for doing business in a global environment have altered significantly during the last two decades the value of logistics and supply string management (LSCM) has been acknowledged universally. Since companies noticed the need to adjust to the changing conditions in an environment of globalization, technological innovation, and more sophisticated consumer demand to survive and flourish they began to incorporate into their systems of operations and give attention to a strong LSCM component (Rushton & Master, 2007). Remarkable logistics and provide chain performance is now a well-recognized proper dimension to get companies to gain competitive advantage. The growth of logistics outsourcing techniques in the USA can be attributable to better transportation solutions; greater give attention to core businesses; impact on price reduction; improvements in solutions; development of important technological knowledge; availability of computerized systems; as well as the need for more professional and better ready logistics solutions (Sheffi, 1990). The growth of business aspect has caused outsourcing of the logistics actions to gain more and more greater importance. Companies have been completely considering choices to manage all their logistics actions including, creating in house dedicated logistics function, setting up strategies subsidiaries or perhaps acquiring a logistics organization. (Sahay & Mohan, 2006).

A 3PL provider a well-known company, which supplies and/or co-ordinates strategies functions across multiple links in the supply chain. The corporation acts as a

you

" third party” facilitator between seller/manufacturer (the " first party”) and buyer/user (the ‘second party'), Determine 1 .

Number 1 . Main components of 3PL.

Source: Exploration on India – Third Party Logistics – India, Nov – 2009. www.researchonindia.com

Numerous authors possess provided their particular version of 3PL classification, which are listed in Table 1 )

Table one particular – Meanings of 3PL in the strategies literature.

Writers

Lieb (1992)

Definition

The utilization of external businesses to perform logistics functions which may have traditionally been performed within an organization. The function performed by the alternative party can include the entire logistics process or perhaps selected activities within that process.

Andersson

(1997)

Murphy and

Poist (1998)

The procurement of an integrated group of logistics companies in a longterm relationship among a shipper and something provider. A relationship among a shipper and 3rd party which, in comparison with basic companies, has more customized offerings, encompasses a broader number of service functions and is seen as a longer term, more mutually beneficial romance.

2

Vab Laarhoven

ou al. (1999)

Berglund

(2000)

Bask (2001)

Activities carried out by a strategies service provider on behalf of a shipper and including at least management and execution of transportation and warehousing. Additionally , other activities could be included, one example is inventory management, information related activities, such as tracking and tracing, value added...

References: Aghazadeh S. M. (2003), " How to choose an effective third party strategies

provider? ”, Management Study News, Vol

Aktas, E., & Ulengin, F. (2005), " Outsourced workers logistics actions in Turkey”, The

Diary of Organization Information Supervision, Vol

Alves, A. 3rd there’s r. and Vieira A. (2006), ‘‘SERVQUAL like a marketing tool to

evaluate service top quality in higher education institutions'', Second International

Bask, A. H. (2001), " Relationships between 3PL services and members of

supply chains – a strategic perspective", Journal of Business and Industrial

Bagchi, P. T., Virum, H. (1996), " European strategies alliances: a management

model", International Record of Logistics Management, Volume

Bhantnagar, Ur., Sohal A. S., & Millen, 3rd there’s r., (1999), " Third party strategies services:

a Singapore perspective”, International Journal of Physical Distribution &

Bhatnagar, R., Viswanathan, S. (2000), " Re-engineering global supply organizations:

alliances among manufacturing and global logistics service providers",

Bowersox, D. (1990), " The strategic benefit of logistics alliances”, Harvard

Business Assessment, July-August, pp

Bradley, S. (1995), " Third parties gain slow, careful buyer support”,

Purchasing, May, pp

Lubrifiant, V., Stone, M. A. (2005), " Growth and relational approaches by the

European logistics providers: rationale and outcomes", Vehicles

Colson G., Dorigo Farrenheit. (2004), " A general public warehouse collection support program,

European Journal of Operational Research”, Volume

Dapiran, L., Lieb, Ur., Millen, Ur. and Sohal, A. (1996), " Third party logistics

solutions usage by large Aussie firms”, Worldwide Journal of Physical

Daugherty, P. L., Stank, Capital t. P., Rogers, D. H. (1996), " Third party strategies service

companies: purchaser is actually perceptions", Foreign Journal of having and

Efendigil T., Г–nГјt S., Kongar E. (2008), " A holistic approach for choosing a

third-party reverse logistics provider in the presence of vagueness”, Pcs

Fantasia, J. J. (1993), " Will you be a candidate for third party strategies? ”,

Vehicles & Circulation, January, g

Foster, Big t. A. and Muller, Elizabeth. J. (1990), " Third parties: your passport to profits”,

Distribution, Volume

Goldberg, Deb. (1990), " JIT's next thing: moves shipment and data”, Transportation &

Distribution, 12 ,, pp

Gooley, T. B. (1992), " To use outsourcing for or to not outsource”, Traffic Management,

January, pp

Haapanen M and Vepsäläinen Ari (1999), Jakelu 2020, Asiakkaan läpimurto

Espoo, ELC-Finland, pp

Hannon M (2005), " Shippers Rely on 3PLs to generate Capacity, Gain Agility”,

Purchasing, Vol

Hwang, H. S i9000, Moon, C, Chuang, C. L. and Goan, Meters. J. (2005), " Supplier Selection

and Planning Unit Using AHP”, International Journal of the Data

Systems for Logistics and Management (IJISLM), Vol. 1, No . one particular, pp. 47-53

Jharkharia H and Shankar R (2006), " Number of Logistics Provider: An

Hum, S. H. (2000), " A Hayes-Wheelwright framework procedure for startegic

management of third party strategies services", Integrated Manufacturing

Knemayer, A. M. and Murphy, P. Ur. (2004), " Evaluating the performance of thirdparty strategies arrangements: a relationship promoting perspective”, Log of

Supply Chain Administration, Vol

Sanft, R. C., Miller, Ur. A. and Wassenhove, M. N. Sixth is v. (1993), " Third party strategies

services: an evaluation of skilled American and European

Sanft, R. C. and Randall, H. D. (1996), " A comparison in the use of thirdparty

logistics services by huge American companies, 1991, 1994 and 1995”,

Maltz, A. B. (1994), " The relative significance of cost and quality in the

outsourcing of warehousing", Record of Business Logistics, Volume

McMullan, A. (1996), " Supply chain management practices in Asia Pacific

today”, International Record of Physical Distribution & Logistics Managing,

Menon M., McGinnis Meters., Ackerman K. (1998), " Selection conditions for services of

third-party logistics services: an exploratory study”, Log of Organization

Minaham, To. (1997), " Are customers grumming in the supply chain”, Purchasing,

Volume

Persson, G., Virum, They would. (2001), " Growth methods for logistics providers:

a case study", International Record of Strategies Management, Volume

Rabinovich, At the., Windle, Ur., Dresner, M. and Corsi, T. (1999), " Outsourced workers of

built-in logistics capabilities: an study of industry practices”,

Rao, E., Young, Ur. R. (1994), " Global supply chains: factors influencing

outsourcing of logistics functions", International Record of Physical Distribution

Richardson, H. M. (1990), " Explore outsourcing”, Transportation & Distribution,

September, pp