IDEAS home Printed from https://ideas.repec.org/a/gam/jlogis/v6y2022i2p38-d837642.html
   My bibliography  Save this article

Creating Valuable Relationships with Third-Party Logistics (3PL) Providers: A Multiple-Case Study

Author

Listed:
  • Eric Owusu Darko

    (Tel Energy Ltd., No. 2 Nii Sai Road, East Legon, Accra, Ghana
    Management and Operations, Leeds University Business School, Leeds LS2 9JT, UK)

  • Ilias Vlachos

    (Supply Chain, Purchasing and Project Management Department, Excelia Business School, Excelia Group, 17000 La Rochelle, France)

Abstract

Background : Logistics service outsourcing in recent years has influenced the evolution of third-party logistics (3PL) providers across the globe. The study explored the evolving services of 3PLs and relational factors that influence the relationship with their customers. Methods: Qualitative research and multiple case studies from four different industries were used. Semi-structured interviews were adopted. Results: The findings show that aside from logistics and warehousing the customer expects 3PLs to create value through more decision-making responsibilities, such as managing the customer’s relationship with 3PLs, and customised services that will make them competitive. Furthermore, the results showed that to achieve relationship performance, trust must be collaborative from the start, which increases information sharing and leads to an improved relationship performance. Conclusions: Consistent performance increases commitments from both partners. Implications, limitations and future research suggestions are provided.

Suggested Citation

  • Eric Owusu Darko & Ilias Vlachos, 2022. "Creating Valuable Relationships with Third-Party Logistics (3PL) Providers: A Multiple-Case Study," Logistics, MDPI, vol. 6(2), pages 1-22, June.
    • Handle: RePEc:gam:jlogis:v:6:y:2022:i:2:p:38-:d:837642
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2305-6290/6/2/38/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2305-6290/6/2/38/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bin Wu & Glory Gu & Chris James Carter, 2021. "The bond and retention of Chinese seafarers for international shipping companies: a survey report," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-17, December.
    2. Yeung, Kwong & Zhou, Honggeng & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The impact of third-party logistics providers' capabilities on exporters' performance," International Journal of Production Economics, Elsevier, vol. 135(2), pages 741-753.
    3. Carbone, Valentina & Stone, Marilyn A., 2005. "Growth and relational strategies used by the European logistics service providers: Rationale and outcomes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 495-510, November.
    4. Liu, Chiung-Lin & Lyons, Andrew C., 2011. "An analysis of third-party logistics performance and service provision," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(4), pages 547-570, July.
    5. Spekman, Robert E., 1988. "Strategic supplier selection: Understanding long-term buyer relationships," Business Horizons, Elsevier, vol. 31(4), pages 75-81.
    6. Daugherty, Patricia J. & Richey, R. Glenn & Roath, Anthony S. & Min, Soonhong & Chen, Haozhe & Arndt, Aaron D. & Genchev, Stefan E., 2006. "Is collaboration paying off for firms?," Business Horizons, Elsevier, vol. 49(1), pages 61-70.
    7. Marasco, Alessandra, 2008. "Third-party logistics: A literature review," International Journal of Production Economics, Elsevier, vol. 113(1), pages 127-147, May.
    8. Fawcett, Stanley E. & Jones, Stephen L. & Fawcett, Amydee M., 2012. "Supply chain trust: The catalyst for collaborative innovation," Business Horizons, Elsevier, vol. 55(2), pages 163-178.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Madhuri Saripalle, 2018. "Determinants of profitability in the Indian logistics industry," International Journal of Logistics Economics and Globalisation, Inderscience Enterprises Ltd, vol. 7(1), pages 13-27.
    2. Milivoj Markovic & Nikola Draskovic & Jasminka Samardzija, 2017. "Competitive Advantage In Cost Sensitive Glass Packaging Industry Through Outbound Logistics," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 281-292.
    3. Pal Singh, Satender & Adhikari, Arnab & Majumdar, Adrija & Bisi, Arnab, 2022. "Does service quality influence operational and financial performance of third party logistics service providers? A mixed multi criteria decision making -text mining-based investigation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    4. Miroslava Rakovska & Petya Fileva, 2017. "Phases of the Development of Logistics Service Providers: The Case of Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 125-151.
    5. Vlachos, Ilias & Singh, Rajesh Kumar, 2023. "Triad structure impact on the triad resources-firm performance relationship: Theory and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    6. Hofmann, Erik & Solakivi, Tomi & Töyli, Juuso & Zinn, Martin, 2018. "Oil price shocks and the financial performance patterns of logistics service providers," Energy Economics, Elsevier, vol. 72(C), pages 290-306.
    7. Kongmanas Yavaprabhas & Mehrdokht Pournader & Stefan Seuring, 2023. "Blockchain as the “trust-building machine” for supply chain management," Annals of Operations Research, Springer, vol. 327(1), pages 49-88, August.
    8. Aguezzoul, Aicha, 2014. "Third-party logistics selection problem: A literature review on criteria and methods," Omega, Elsevier, vol. 49(C), pages 69-78.
    9. Venus Lun, Y.H. & Lai, Kee-hung & Wong, Christina W.Y. & Cheng, T.C.E., 2015. "Greening propensity and performance implications for logistics service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 50-62.
    10. Kevin O'Connor & Ben Derudder & Frank Witlox, 2016. "Logistics Services: Global Functions and Global Cities," Growth and Change, Wiley Blackwell, vol. 47(4), pages 481-496, December.
    11. Sjauw-Koen-Fa, August R. & Blok, Vincent & Omta, S.W.F. (Onno), 2016. "Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-30, February.
    12. Patricija Bajec & Danijela Tuljak-Suban, 2019. "An Integrated Analytic Hierarchy Process—Slack Based Measure-Data Envelopment Analysis Model for Evaluating the Efficiency of Logistics Service Providers Considering Undesirable Performance Criteria," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    13. Cruijssen, F. & Borm, P.E.M. & Fleuren, H.A. & Hamers, H.J.M., 2005. "Insinking : A Methodology to Exploit Synergy in Transportation," Other publications TiSEM 958be918-e7b4-4e46-9cbe-d, Tilburg University, School of Economics and Management.
    14. repec:wsi:acsxxx:v:21:y:2019:i:08:n:s1363919619500130 is not listed on IDEAS
    15. Judit Oláh & Attila Bai & György Karmazin & Péter Balogh & József Popp, 2017. "The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    16. Siguaw, Judy A. & Baker, Thomas L. & Simpson, Penny M., 2003. "Preliminary evidence on the composition of relational exchange and its outcomes: the distributor perspective," Journal of Business Research, Elsevier, vol. 56(4), pages 311-322, April.
    17. Jayaram, Jayanth & Tan, Keah-Choon, 2010. "Supply chain integration with third-party logistics providers," International Journal of Production Economics, Elsevier, vol. 125(2), pages 262-271, June.
    18. Tomás Escobar-Rodríguez & Rocío Bonsón-Fernández, 0. "Analysing online purchase intention in Spain: fashion e-commerce," Information Systems and e-Business Management, Springer, vol. 0, pages 1-24.
    19. Per Erik Eriksson & Ossi Pesamaa, 2007. "Modelling procurement effects on cooperation," Construction Management and Economics, Taylor & Francis Journals, vol. 25(8), pages 893-901.
    20. Coltman, Tim & Devinney, Timothy M. & Keating, Byron W., 2010. "Best-worst scaling approach to predict customer choice for 3PL services," MPRA Paper 40492, University Library of Munich, Germany.
    21. Artz, Kendall W. & Brush, Thomas H., 2000. "Asset specificity, uncertainty and relational norms: an examination of coordination costs in collaborative strategic alliances," Journal of Economic Behavior & Organization, Elsevier, vol. 41(4), pages 337-362, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlogis:v:6:y:2022:i:2:p:38-:d:837642. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.