Do the Service Priorities of Companies Outsourcing to 3PL Providers Vary by Industry?

Abstract

This research analyses how well the priorities of third party logistics providers in the UK are aligned to that of their customers and how these priorities change dependent upon industry segment and size. Additionally, the research looks into how the levels of information communication technology (ICT) employed by a supplier and their green profile could be affecting their ability to remain competitive. The results of this research should improve the profitability and reputation of both suppliers and clients through better resource allocation, investment decisions, service quality and the ability of 3PL organisations to be able to employ mass customisation strategies to their logistics provision. The research builds on the initial work of John Mentzer et al. (1999) who first developed a logistics service quality scale (LSQ) and the subsequent refinement by Rafiq and Jafaar (2005), who made the scale relevant to the UK market. The study uses dyadic survey results collected from third party logistics providers and clients focusing on the retail and manufacturing industries.