Proceedings of ICLT 2017

IMPLEMENTING SUCCESSFUL LOGISTICS OUTSOURCING CONTRACTS: THE CASE OF 3PL PROVIDERS AND USERS IN SINGAPORE

Vinh V. Thai; Shams Rahman

School of Business IT & Logistics, RMIT University,445 Swanston St., Melbourne 3000, Victoria; School of Business IT & Logistics, RMIT University,445 Swanston St., Melbourne 3000, Victoria

International Conference on Logistics & Transport 2017, Bangkok, Thailand, pp. 221-229

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Abstract

Purpose: This paper examines how a logistics outsourcing contract can be successfully implemented from the perspectives of both 3PL providers and users in the context of Singapore. Design/methodology/approach: The case study design is adopted to empirically examine logistics outsourcing practices. Data are collected through in-depth interviews with senior logistics and supply chain managers from three 3PL service providers (logistics outsourcing firms) and one 3PL user (logistics outsourcer). These companies are engaged comprehensively in logistics outsourcing activities, and encompass both international firms that have their operations in Singapore and those local firms whose operations expand internationally. Findings: Results suggest that although there are some differences between the 3PL user and 3PL providers, and among the 3PL providers themselves, most of the eight critical aspects of successful logistics outsourcing contracts are common between them and are in line with the relevant literature. What seems unclear in the literature however, is how cultural differences can make or break a logistics outsourcing contract. This research also confirms that these differences can be countered by using the “think globally, act locally” business strategy. Research limitations/implications (if applicable): The major limitation of this research is the use of small number of cases. Future research needs to employ more cases from both 3PL provider’s and user’s perspectives. Practical implications (if applicable): This research confirms the significance of investigating the key success factors of logistics outsourcing contract implementation from both 3PL provider’s and user’s perspectives, as well as the need for “cultural intelligent” through cultural training. Originality/value: This is one of the few research on logistics outsourcing that employs case study design from both 3PL provider’s and user’s perspectives.

Keywords

logistics outsourcing; 3PL; critical success factors; Singapore

Citation

Vinh V. Thai; Shams Rahman (2017). IMPLEMENTING SUCCESSFUL LOGISTICS OUTSOURCING CONTRACTS: THE CASE OF 3PL PROVIDERS AND USERS IN SINGAPORE. Proceedings of the International Conference on Logistics & Transport (ICLT 2017), Bangkok, Thailand, pp. 221-229.