Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives

Yangyan Shi, Tiru Arthanari, Lincoln Wood

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Purpose: This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics.

Design/methodology/approach: New Zealand 3PL providers were surveyed, and 166 responses were received. Structural equation modeling was used to test the conceptual model.

Findings: From the perspective of 3PL providers, uncertainty, frequency and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size and low levels of uncertainty as supporting conditions for the development of 3PP services.

Research limitations/implications: The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services.

Originality/value: This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients.

LanguageEnglish
Pages40-57
Number of pages18
JournalSupply Chain Management
Volume22
Issue number1
DOIs
Publication statusPublished - 1 Jan 2017
Externally publishedYes

Fingerprint

New Zealand
Third party logistics providers
Purchase
Uncertainty
Asset specificity
Order size
Structural equation modeling
Conceptual model
Value-added services
Transaction cost economics
Business environment
Design methodology
Purchasing

Keywords

  • Logistic service providers
  • New Zealand
  • Outsourcing
  • Purchasing
  • Structural equation model

Cite this

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abstract = "Purpose: This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics.Design/methodology/approach: New Zealand 3PL providers were surveyed, and 166 responses were received. Structural equation modeling was used to test the conceptual model.Findings: From the perspective of 3PL providers, uncertainty, frequency and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size and low levels of uncertainty as supporting conditions for the development of 3PP services.Research limitations/implications: The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services.Originality/value: This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients.",
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Developing third-party purchase (3PP) services : New Zealand third-party logistics providers’ perspectives. / Shi, Yangyan; Arthanari, Tiru; Wood, Lincoln.

In: Supply Chain Management, Vol. 22, No. 1, 01.01.2017, p. 40-57.

Research output: Contribution to journalArticleResearchpeer-review

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