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The Impact of Third-Party Logistics Performance on the Logistics and Export Performance of Users: An Empirical Study

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  • Andy C L Yeung

    (Department of Logistics, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong.)

Abstract

Third-party logistics (3PL) denotes ‘a relationship between a shipper and third party which, compared with basic services, has more customised offerings, encompasses a broader number of service functions and is characterised by a longer-term, more mutually beneficial relationship’. Previous studies on 3PL generally fall into two categories. The first group examines the willingness of shippers (users), and the respective benefits and costs to them, of using 3PL services, whereas the second group concentrates on devising winning strategies for 3PL providers to better fulfil the requirements of users. This paper attempts to provide new insights on the relationship between 3PL providers and shippers by examining the impact of the performance of 3PL service providers on the user logistics and export performance of manufacturers and traders in Hong Kong. The results reveal that the timeliness of the service; pricing; and the quality of delivery of 3PL service providers are positively related to the users’ logistics and/or export performance. However, performance in customised supplementary services is not related to any aspect of the users’ logistics or export performance. The overall findings suggest that users should focus primarily on the timeliness of 3PL services, followed by the quality of delivery and pricing when selecting service providers. On the other hand, 3PL service providers are advised to focus primarily on core logistics activities, that is timely deliveries and quality handling at reasonable prices, and to downplay offerings of customised supplementary services unless they are engaged in long-term relationships with the users. Maritime Economics & Logistics (2006) 8, 121–139. doi:10.1057/palgrave.mel.9100155

Suggested Citation

  • Andy C L Yeung, 2006. "The Impact of Third-Party Logistics Performance on the Logistics and Export Performance of Users: An Empirical Study," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(2), pages 121-139, June.
    • Handle: RePEc:pal:marecl:v:8:y:2006:i:2:p:121-139
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    Citations

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    Cited by:

    1. Hosang Jung, 2017. "Evaluation of Third Party Logistics Providers Considering Social Sustainability," Sustainability, MDPI, vol. 9(5), pages 1-18, May.
    2. Twenhöven, Thomas & Petersen, Moritz, 2019. "Impact and beneficiaries of blockchain in logistics," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Artificial Intelligence and Digital Transformation in Supply Chain Management: Innovative Approaches for Supply Chains. Proceedings of the Hamburg Int, volume 27, pages 443-468, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    3. Raut, Rakesh D. & Gardas, Bhaskar B. & Narwane, Vaibhav S. & Narkhede, Balkrishna E., 2019. "Improvement in the food losses in fruits and vegetable supply chain - a perspective of cold third-party logistics approach," Operations Research Perspectives, Elsevier, vol. 6(C).
    4. Aguezzoul, Aicha, 2014. "Third-party logistics selection problem: A literature review on criteria and methods," Omega, Elsevier, vol. 49(C), pages 69-78.
    5. 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.
    6. Stefan Jovčić & Petr Průša, 2021. "A Hybrid MCDM Approach in Third-Party Logistics (3PL) Provider Selection," Mathematics, MDPI, vol. 9(21), pages 1-19, October.
    7. Parhizkar, Omid & Miller, Chad R. & Smith, Robert L., 2010. "Private sector development implications of the export performance determinants of U.S. small-medium forest enterprises to Mexico, Europe, and Asia," Forest Policy and Economics, Elsevier, vol. 12(5), pages 387-396, June.

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