3p Case Study

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The 3PL selection is a multi-criteria problem and hence a difficult process where multiple, both tangible and intangible, criteria need to be considered. Some criteria are developed with specific customer needs while others are common for all environments. Spencer et al., (1994) survey with 154 firms listed in the American Public Warehouse Register and identified 23 specific criteria used by these firms to choose their 3PL in the just – in- time (JIT) situation. These criteria were in the following order of rank: on-time performance, service quality, good communication, reliability, service speed, flexibility, customer support, easy to work with, management quality, early announcement of disruptions, order cycle time, willingness to customize…show more content…
The research survey, conducted by Morash et al.,(1996) among 65 US companies in the furniture industry suggested that logistics performance was determined by “demand capabilities” which include pre-sale and post-sale customer services, delivery speed, delivery reliability, and responsiveness to target market and “supply capabilities” which comprise a wide range distribution coverage, selective distribution coverage, and low total cost distribution. Dapiran et al., (1996) and Milleneta (1996) done an exploratory study of 84 users of 3PL in Australia showed that cost is the most important selection factor of 3PL. Other important criteria were: services, personal knowledge of the contractor, coverage provided, previous experience and references, experience in project management and new systems’ implementation, and perceived competence. Stank and Maltz (1996) presented an exploratory review of factors that influence the decision to purchase 3PL services in the domestic versus international logistics…show more content…
The study conducted by Murphy and Daley (1997) with 375 members of the Council Logistics Management in the US, disclosed that twelve (12) factors of international freight forwarders selection are placed in the following order of importance: expertise, reliability, ability to provide relevant information, attention, reputation, price, financial condition, convenient to use, services, geographical specialization, product specialization, and size. The study conducted among 126 firms in Singapore by Bhatnagar et al., (1999) showed that service quality and cost are considered as the most important criteria in selecting 3PL, followed by reputation, range of services, and relevant past

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