FACTORS AFFECTING THE SELECTION OF THIRD-PARTY LOGISTICS SERVICE PROVIDERS IN THE EDIBLE OIL INDUSTRY OF KARACHI
Purpose: Logistics plays an important role in integrating the supply chain of industries. But given the volatility and dynamic nature of supply chain management as a field, the factors that need to be considered when choosing a 3PL can vary based on geographic location, type of industry, nature of the product and so on. Therefore, this study aims to identify which factors impact 3PL Service Provider selection the most in the edible oil industry specifically based in Karachi.
Design: The study describes and the theory of core competencies and how these competencies are used in the selection process of 3PL Service Providers. A survey was carried out through questionnaires to determine which competencies are best suited to choosing a 3PL Service Provider in the edible oil industry.
Findings: The findings showed the Selection of 3PL Provider was most significantly impacted by two of the five variables Cost of Service and Operational Performance. Financial Performance showed a weak relationship while the last two variables were proven to have little or no relationship with the independent variable.
Originality and Value: The study will help the supply chain professionals of the edible oil companies focus on certain factors while outsourcing their work most importantly selecting a 3PL service provider.
Akman, G., & Baynal, K. (2014). Logistics Service Provider Selection through an Integrated Fuzzy Multicriteria Decision Making Approach. Journal of Industrial Engineering, 16.
Bagchi, P. K., & Virum, H. (1996). European logistics alliances: a management model. International Journal of Logistics Management, 7, 93-108.
Binh, T. V. (2016). Factors Impacting on the Selection of Third Party Logistics Provider. China-USA Business Review, 616-627.
Cox, A. (1999). Power, Value and SCM. Supply Chain Management: An International Journal, 167-175.
Geetha, E. (2014). A Study on Factors Influencing the Selection of 3PL Logistics Providers - Users Perspective. Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking, (pp. 10-12). Dubai.
Gottschalk, P., & Solli-Saether, H. (2005). Critical Success Factors from IT Outsourcing Theories: An Emperical Study. Industrial Management and Data Systems, 105(6), 685-702.
Haridasan, V. (2016). A Multi Criteria Approach for Selecting Third Party Logistics Provider using Analytical Hierarchical Processing (AHP) - Insights from Edible Oil Industry. International Journal of Advanced Engineering, Management and Science (IJAEMS).
Holldorsson, A., & Skjott-Larsen, T. (2004). Developing logistics competencies through third party logistics relationships. International Journal of Operations and Production Management, 24(2), 192-206.
Iqbal, T., & Deshmukh, I. (2018). Edible Oil Industry - Sector Update. Karachi: JCR-VIS.
Janmohammad, B. (2018, January 20). An Overview of Edible Oil Industry in Pakistan. Retrieved from Business Recorder: https://fp.brecorder.com/2018/01/20180120337192/
Karrapan, C., Sishange, M., Swanepoel, E., & Kilbourn, P. J. (2017). Benchmarking criteria for evaluating third-party logistics providers in South Africa. Journal of Transport and Supply Chain Management, 11.
Lieb, R., Millen, R., & van Wassenhove, L. (1993). Third-party logistics services: a comparison of experienced American and European manufacturers. International Journal of Physical Distribution and Logistics Management, 23, 35-44.
Long, M. (2017). 2017 21st Annual Third-Party Logistics Study: The State of Logistics Outsourcing. Capgemini and Dr. C. John Langley.
Parker, R. &. (2014). Designing and Conducting Surkey Research: A comprehansive Guide.
Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, 79-91.
Rahman, S., & Selen, W. (2010). Shippers-Providers Perception of Third-Party Logistics Services - An Importance-Performance Matrix Analysis. International Conference on Industrial Engineering and Operations Management. Dhaka.
Robinson, A. (2015, March 02). 13 Key Considerations when Selecting a 3PL & [BONUS INFOGRAPHIC] 3PL vs 4PL. Retrieved from Cerasis: http://cerasis.com/2015/03/02/selecting-a-3pl/
Selviardis, K., & Spring, M. (2007). Third party logistics: a literature review and research agenda. The International Journal of Logistics Management, 125-150.
So, S.-h., Kim, J., Cheong, K., & Cho, G. (2006). Evaluating the service quality of third party logistics service providers using the analytic hierarchy process. Journal of Information Systems and Technology Management, 3, 261-270.
Vaxevanou, A., & Konstantopoulos, N. (2014). Models referring to outsourcing theory. International Conference on Strategic Innovative Marketing (pp. 572-578). Madrid: Spain.
Wambua, D. J. (2017). Influence of Outsourcing Third-Party Logistics on the Performance of Food And Beverages Manufacturing Companies In Kenya. Jomo Kenyatta University of Agriculture and Technology, Supply Chain Management. Nairobi: Jomo Kenyatta University of Agriculture and Technology.
Windle, R. E. (1999). Outsourcing of Integrated Logistics Functions: An Examination of Industry Practices. International Journal of Physical Distribution and Logistics Management.