INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 09, SEPTEMBER 2019 ISSN 2277-8616
2010
IJSTR©2019
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3
rd
Party Logistics Providers: Comparative Study
And Analysis By Using SPSS In Indian Market
Veerandra Patil, Dr. Manoj Modi
Abstract: With competitive pressures placing an increasing dependence on the ability of organizations to deliver customer adapted
products quickly and on time, logistics has been an area that has been subjected to investigation. While, there is a growing evidence of
organizations increasingly seeking to outsource their logistics activities, there have been few comprehensive studies on the outsourcing of
logistics in the Middle Eastern region. The purpose of this paper is to examine the usage of third party logistics (3PL) services. In India the
logistics industry is evolving rapidly and it is the interplay of infrastructure, technology and new types of service providers that will define
whether the industry is able to help its customers, reduce their logistics costs and provide effective services . Third party logistics (3PL) is
drawing attention at government, industrial, academicians and practitioner’s levels. This project is an attempt to provide 3PL practices
perspective in India. The project focuses on present extent of usage of third party logistics services based on data collected from the
working professionals in 3PL companies. Data analysis is done using SPSS software and descriptive statistics analysis, correlation,
regression analysis and reliability test of collected data is performed. This has helped to compare the best third party logistics provider in
Indore and Nasik cities of India. Analysis shows that there are similarities on the use of contract logistics services in Madhya Pradesh and
Maharashtra. These include the proportion of firms utilising contract logistics, the extent of involvement of functional managers, and
activities outsourced. Notable differences between the 3PL providers include process, and the benefits to the firms from the use of contract
logistics.
Index Terms: Logistics, Third Party Logistics, logistics outsourcing; service providers; India, SPSS software, statistics analysis.
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1 INTRODUCTION
In the today’s era supply chain management (SCM) is growing
rapidly and the business of supply chain management is
increasing every places in the world Supply chain
management includes many logistics function such as
transportation, warehousing, distribution management and
freight consolidation etc. Supply chain management is the
man concern to represent this project and the intention of the
research is to identify the most effective ways of choosing a
third party Logistics (3PL) provider. Third party logistics is
defined as when a third party is brought to manage various
logistics functions. A 3PL provider is an independent
economic entity that creates value for its client. A trucking
company, a warehouse operator, and a contract manufacturer
can all be considered third parties. The 3PL industry is
constantly changing, although its existence is nothing new.
The range of value propositions they offer today has changed
dramatically in recent years. Global industry consolidation,
technology integration, Third-party logistics (3PL) refers to
outsourcing transportation, warehousing and other logistics
related activities to a 3PL service provider that were originally
performed in-house. More and more corporations across the
world are outsourcing their logistics activities due to various
reasons, some of which are outlined below.
• Due to globalization, corporations across the world are
increasingly sourcing, manufacturing and distributing on a
global scale making their supply chains very complex. Hence
they have to outsource their logistics activities to experienced
3PL providers, who have global operations. Today’s 3PL
providers with their sophisticated IT capabilities and state-of-
the-art transportation and material handling equipment and
warehousing facilities offer complete supply chain Solutions.
• Logistics outsourcing is used to complement the logistics
activities the corporations do not have competency in, and
also to increase the geographic reach. When a corporation
expands business overseas, it may not be conversant with the
customs duties, tax structures, rules and regulations,
import/export policies of the government, and culture of the
foreign country. A 3PL provider, who has long been operating
in that country, will be better able to carry out the logistics
operations.
• Logistics may not be one of the core activities of a
corporation. So, inefficiency may creep in if it is looked upon
as a secondary activity. By outsourcing logistics, corporations
may focus on their core competencies.
• Logistics outsourcing may also reduce costs as the 3PL
providers can get the advantage of the economies of scale,
which is otherwise not available to the corporations.
• By outsourcing logistics, corporations can reduce their asset
base, and deploy the capital released for other productive
usage.
• Logistics outsourcing improves cycle time and delivery
performance, thereby increasing customer satisfaction.
• Since the 3PL providers are now offering a number of value-
added services such as customs clearance, freight forwarding,
import/export management, distribution, after sales support,
reverse logistics and so on, corporations can outsource all
these activities, and concentrate on their core business
operations.
• Due to an incredible growth in electronic retailing since the
late 1990’s, many firms around the world with virtually no
distribution systems rely heavily on the 3PL providers for
delivery of the merchandise at the customer’s doorstep. This
has resulted in a significant growth in the order fulfillment
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Veerandra Patil, Acropolis Institute of Technology & Research Indore, India, E-
mail: virgipatil@gmail.com
Dr. Manoj Modi Acropolis Institute of Technology & Research Indore, India,E-
mail: manojmnitjaipur1@gmail.com