Embedded service concept and its model for logistics outsourcing

Abstract

The case study approach is adopted to analyze the information service platforms of 3PLs. The characteristics of over-emphasis on function integrity of the supply chain and logistics services but disadvantage to information service outsourcing of the current information service platforms of the 3PLs are pointed out. The concept of detachable information service component for information services is put forward by analysis of the current status of information service of 3PLs, which can not only enhance the flexibility of 3PLs' services, but also eliminate trust barriers between the 3PLs and customers. Namely, business data, resources required and business controls of the customer enterprise are detached to ensure the customer enterprise to retain and control its core business data and business security as much as possible. In the mean time, the customer enterprise can share the resources and capacity of decision-making on information with the 3PLs. Customer enterprise can try, rent or purchase the detachable information service components of 3PLs, and make full use of the service control and resource capacity provided by 3PLs to improve the efficiency of enterprise. While the 3PLs might improve their own information integration and reusability by the detachable information service components, and gain more business opportunities and benefits by providing customers with more flexible and efficient services, achieving a win-win in the benefit of all parties.