Integration between manufacturers and third party logistics providers?

Purpose - The purpose of this study is to analyse the extent of the integration between manufacturers and third party logistics (TPL) providers at present and how the integration is expected to develop in the near future. The focus is on studying what tasks are part of the cooperation, what informat...

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Bibliographic Details
Published in:	International journal of operations & production management 2008-03, Vol.28 (4), p.331-359
Main Authors:	Mortensen, Ole, Lemoine, Olga W.
Format:	Article
Language:	eng
Subjects:	Alliances Communications technologies Cooperation Customers Distributors Enterprise resource planning Information technology Integration International Literature reviews Logistics Manufacturers Manufacturing Manufacturing industries Materials management Standardization Studies Suppliers Supply chain management Systems integration Third party
Online Access:	Get full text
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Summary:	Purpose - The purpose of this study is to analyse the extent of the integration between manufacturers and third party logistics (TPL) providers at present and how the integration is expected to develop in the near future. The focus is on studying what tasks are part of the cooperation, what information and communications technology (ICT) tools are used for support, and what types of services are supplied and are expected to be supplied by TPL providers in the future.Design methodology approach - A multiple case study of seven manufacturers and TPL providers is conducted. As the basis for the study a literature review is presented focusing on supply chain management and TPL provider integration as well as operationalisation of the integration concept. A framework is chosen for developing a detailed interview guide.Findings - Cooperation is primarily found in sub-processes of three out of the eight business processes studied. Further integration in the same processes is expected, based on ICT tools and with a focus on cost. ICT competences are primarily seen as a qualifier not a differentiator. Because the future TPL industry is expected to be characterised by more standardised services, more segmented markets for the various services and more intense competition, the manufacturers do not expect increased dependence on the TPL providers.Research limitations implications - Managerial and behavioural components are not part of this study and their effect on integration will require further investigation.Originality value - From a supply chain management perspective, the study sheds light on a rarely explored area concerning the integration between manufacturers and TPL providers and its future development.
ISSN:	0144-3577 1758-6593