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Assessing a cross-border logistics policy using a performance measurement system framework: the case of Hong Kong and the Pearl River Delta region

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  • David W.C. Wong
  • K.L. Choy
  • Harry K.H. Chow
  • Canhong Lin

Abstract

For the most rapidly growing economic entity in the world, China, a new logistics operation called the indirect cross-border supply chain model has recently emerged. The primary idea of this model is to reduce logistics costs by storing goods at a bonded warehouse with low storage cost in certain Chinese regions, such as the Pearl River Delta (PRD). This research proposes a performance measurement system (PMS) framework to assess the direct and indirect cross-border supply chain models. The PMS covers four categories including cost, time, quality and flexibility in the assessment of the performance of direct and indirect models. Furthermore, a survey was conducted to investigate the logistics performance of third party logistics (3PLs) at the PRD regions, including Guangzhou, Shenzhen and Hong Kong. The significance of the proposed PMS framework allows 3PLs accurately pinpoint the weakness and strengths of it current operations policy at four major performance measurement categories. Hence, this helps 3PLs further enhance the competitiveness and operations efficiency through better resources allocation at the area of warehousing and transportation.

Suggested Citation

  • David W.C. Wong & K.L. Choy & Harry K.H. Chow & Canhong Lin, 2014. "Assessing a cross-border logistics policy using a performance measurement system framework: the case of Hong Kong and the Pearl River Delta region," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(6), pages 1306-1320, June.
    • Handle: RePEc:taf:tsysxx:v:45:y:2014:i:6:p:1306-1320
    DOI: 10.1080/00207721.2012.761468
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    References listed on IDEAS

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    1. Hsiao, H.I. & Kemp, R.G.M. & van der Vorst, J.G.A.J. & (Onno) Omta, S.W.F., 2010. "A classification of logistic outsourcing levels and their impact on service performance: Evidence from the food processing industry," International Journal of Production Economics, Elsevier, vol. 124(1), pages 75-86, March.
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    3. Cook, Thomas J. & Vansant, Jerry & Stewart, Leslie & Adrian, Jamie, 1995. "Performance measurement: Lessons learned for development management," World Development, Elsevier, vol. 23(8), pages 1303-1315, August.
    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.
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