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A third-party logistics provider: To be or not to be a highly reliable organization

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  • Zúñiga, Roy
  • Martínez, Carlos

Abstract

This case presents information on the emergence of third-party logistics (3PL) operators in El Salvador. Salvadoran Logistics Provider (SLP) is one of such 3PL. The case uses qualitative and quantitative information to discuss gaps as compared with world-class operators. It describes in detail all in-warehouse operations: receiving, put away, storage, order picking, and shipping; distribution (layout) according to product family zones; and different storage systems and put-away systems used by SLP. Students will have to choose one of several warehouse options presented in this case to carry out the logistics operations of the largest retailer in El Salvador during the Christmas season. However, decision must go beyond a mere numerical estimation to include analysis of more quantitative and strategic factors. It is not a coincidence that since its inception, SLP has deployed the framework of Highly Reliable Organizations, to manage the risk and complexity of its customers' supply chains.

Suggested Citation

  • Zúñiga, Roy & Martínez, Carlos, 2016. "A third-party logistics provider: To be or not to be a highly reliable organization," Journal of Business Research, Elsevier, vol. 69(10), pages 4435-4453.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:10:p:4435-4453
    DOI: 10.1016/j.jbusres.2016.03.009
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    References listed on IDEAS

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    1. de Koster, Rene & Le-Duc, Tho & Roodbergen, Kees Jan, 2007. "Design and control of warehouse order picking: A literature review," European Journal of Operational Research, Elsevier, vol. 182(2), pages 481-501, October.
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    Cited by:

    1. Gao, Yongling & Driouchi, Tarik, 2018. "Accounting for ambiguity and trust in partial outsourcing: A behavioral real options perspective," Journal of Business Research, Elsevier, vol. 92(C), pages 93-104.

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