Assessing efficiency and innovation in the 3PL industry: an empirical analysis. Issue 1 (2nd January 2017)

• Record Type: Journal Article
• Authors: Marchet, Gino; Melacini, Marco; Sassi, Chiara; Tappia, Elena
• Is Part Of: International journal of logistics. Volume 20:Issue 1(2017)
• Page Start: 53
• Page End: 72
• Publication Date: 2017-01-02
• Subjects: 3PL industry -- data envelopment analysis -- Malmquist Index -- case study -- innovation -- efficiency; Business logistics -- Periodicals; 658.005
• DOI: 10.1080/13675567.2016.1226789
• Languages: English
• ISSNs: 1367-5567

Abstract

ABSTRACT: The Third-party Logistics (3PL) industry is facing both important growth rates and increasing competitive pressure. 3PL providers are required to continuously sustain a more and more competitive cost structure (i.e. efficiency) and develop capabilities to improve their services (i.e. innovation); hence, the evaluation of these key success factors is considered a key issue. This paper develops a quantitative analysis of 71 Italian 3PL providers by using Data Envelopment Analysis to jointly assess efficiency and innovation. Furthermore, through a case study research, it corroborates the quantitative results by investigating the strategies of best-in-class companies. Results allowed identifying 13 3PL providers as efficiency leaders and 6 as leaders from both the efficiency and the innovation side. Their input composition indicates a diversification of the business models. A breakdown of the analysis by size and industry focus, along with empirical evidence on the strategies enhancing efficiency and innovation, is also provided.