Developing third-party purchase (3PP) services: New Zealand third-party logistics providers' perspectives. Issue 1 (9th January 2017)

• Record Type: Journal Article
• Authors: Shi, Yangyan; Arthanari, Tiru; Wood, Lincoln
• Is Part Of: Supply chain management. Volume 22:Issue 1(2017)
• Page Start: 40
• Page End: 57
• Publication Date: 2017-01-09
• Subjects: Outsourcing -- New Zealand -- Purchasing -- Structural equation model -- Logistic service providers; Business logistics -- Periodicals; 658.7
• DOI: 10.1108/SCM-06-2016-0189
• Languages: English
• ISSNs: 1359-8546

Abstract

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.