Third-party purchase: an empirical study of Chinese third-party logistics users

Yangyan Shi, Abraham Zhang, Tiru Arthanari, Yanping Liu

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Purpose – Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service from the perspective of 3PL users. Design/methodology/approach – The authors conducted a survey of Chinese 3PL users and received 242 usable responses. The authors then employed structural equation modeling to test the conceptual model. Findings – The authors found that the likelihood of 3PL users using a 3PP service is significantly associated with uncertainty, but not with asset specificity or frequency or transaction size. 3PP usage is significantly associated with value-to-client. Originality/value – This research is the first survey study of 3PP as a value-added service offered by 3PL providers, from the perspective of 3PL users. The findings suggest that 3PL users are very positive about the value of 3PP service. The 3PP market is still in its infancy but it has great potential, especially for commodity items that have less demand uncertainty.

LanguageEnglish
Pages286-307
Number of pages22
JournalInternational Journal of Operations and Production Management
Volume36
Issue number3
DOIs
Publication statusPublished - 7 Mar 2016
Externally publishedYes

Fingerprint

Logistics
Uncertainty
Empirical study
Purchase
Third-party logistics

Keywords

  • China
  • Structural equation modelling
  • Supply chain management
  • Third-party logistics
  • Third-party purchase
  • Transaction cost analysis

Cite this

@article{0b512764accf4953b15478f5338a983c,
title = "Third-party purchase: an empirical study of Chinese third-party logistics users",
abstract = "Purpose – Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service from the perspective of 3PL users. Design/methodology/approach – The authors conducted a survey of Chinese 3PL users and received 242 usable responses. The authors then employed structural equation modeling to test the conceptual model. Findings – The authors found that the likelihood of 3PL users using a 3PP service is significantly associated with uncertainty, but not with asset specificity or frequency or transaction size. 3PP usage is significantly associated with value-to-client. Originality/value – This research is the first survey study of 3PP as a value-added service offered by 3PL providers, from the perspective of 3PL users. The findings suggest that 3PL users are very positive about the value of 3PP service. The 3PP market is still in its infancy but it has great potential, especially for commodity items that have less demand uncertainty.",
keywords = "China, Structural equation modelling, Supply chain management, Third-party logistics, Third-party purchase, Transaction cost analysis",
author = "Yangyan Shi and Abraham Zhang and Tiru Arthanari and Yanping Liu",
year = "2016",
month = "3",
day = "7",
doi = "10.1108/IJOPM-11-2014-0569",
language = "English",
volume = "36",
pages = "286--307",
journal = "International Journal of Operations and Production Management",
issn = "1758-6593",
publisher = "Emerald",
number = "3",

}

Third-party purchase : an empirical study of Chinese third-party logistics users. / Shi, Yangyan; Zhang, Abraham; Arthanari, Tiru; Liu, Yanping.

In: International Journal of Operations and Production Management, Vol. 36, No. 3, 07.03.2016, p. 286-307.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Third-party purchase

T2 - International Journal of Operations and Production Management

AU - Shi, Yangyan

AU - Zhang, Abraham

AU - Arthanari, Tiru

AU - Liu, Yanping

PY - 2016/3/7

Y1 - 2016/3/7

N2 - Purpose – Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service from the perspective of 3PL users. Design/methodology/approach – The authors conducted a survey of Chinese 3PL users and received 242 usable responses. The authors then employed structural equation modeling to test the conceptual model. Findings – The authors found that the likelihood of 3PL users using a 3PP service is significantly associated with uncertainty, but not with asset specificity or frequency or transaction size. 3PP usage is significantly associated with value-to-client. Originality/value – This research is the first survey study of 3PP as a value-added service offered by 3PL providers, from the perspective of 3PL users. The findings suggest that 3PL users are very positive about the value of 3PP service. The 3PP market is still in its infancy but it has great potential, especially for commodity items that have less demand uncertainty.

AB - Purpose – Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service from the perspective of 3PL users. Design/methodology/approach – The authors conducted a survey of Chinese 3PL users and received 242 usable responses. The authors then employed structural equation modeling to test the conceptual model. Findings – The authors found that the likelihood of 3PL users using a 3PP service is significantly associated with uncertainty, but not with asset specificity or frequency or transaction size. 3PP usage is significantly associated with value-to-client. Originality/value – This research is the first survey study of 3PP as a value-added service offered by 3PL providers, from the perspective of 3PL users. The findings suggest that 3PL users are very positive about the value of 3PP service. The 3PP market is still in its infancy but it has great potential, especially for commodity items that have less demand uncertainty.

KW - China

KW - Structural equation modelling

KW - Supply chain management

KW - Third-party logistics

KW - Third-party purchase

KW - Transaction cost analysis

UR - http://www.scopus.com/inward/record.url?scp=84958692320&partnerID=8YFLogxK

U2 - 10.1108/IJOPM-11-2014-0569

DO - 10.1108/IJOPM-11-2014-0569

M3 - Article

VL - 36

SP - 286

EP - 307

JO - International Journal of Operations and Production Management

JF - International Journal of Operations and Production Management

SN - 1758-6593

IS - 3

ER -