A Causal Model to Find the Relationships Between 3PL Service Providers and the Performance of the Logistics Process in Mexican Manufacturing Companies

A Causal Model to Find the Relationships Between 3PL Service Providers and the Performance of the Logistics Process in Mexican Manufacturing Companies

Liliana Avelar-Sosa, Aidé Aracely Maldonado-Macías, Juan L. Hernández-Arellano, Stephanie A. Estupiñan
DOI: 10.4018/978-1-7998-0202-0.ch014
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The purpose of this chapter is to present the relationship between the external service provider named Third Party Logistics 3PL and the performance of the logistics process in Mexican manufacturing companies, in order to ascertain the contribution of the aspects considered, allowing companies' suggested improvement actions. Through a field research in Ciudad Juarez and making use of an instrument about 3PL, authors considered four variables: transport, transport management, information technologies, and warehouse. To find the causal model with the relationships between the variables, authors used structural equations modelling. That also identified the relevant aspects in 3PL providers companies' manufacturing and collaboration activities realized in the practice. The results indicate that mainly the information technologies and the transport management have a greater influence on the performance of the logistics process in this type of company.
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As the international exchange backbone, logistics comprises transportation, warehouses, cross-border crossings, and payment systems, among other functions that are commonly performed by private service providers; in order to support private operators and merchandise owners; which are also essential for governments and regional and international organizations (Önsel & Ülengin 2016). Due to the population increment that industrial growth has brought, the 3PL function has become relevant in the logistics sector currently (Baligil et al., 2011). The services and the complexity of the supply chain has had a huge progress as a result of multiple suppliers and customers involved in it, which have recently led to the use of service companies to support the logistics management. In addition, these companies are known as 3PL, which offer different strategies to reduce transportation times and product distribution. Also, several studies mention that supply chains will be effective until logistic companies identify, measure, and control their performance elements when offering those services which development should consider the flow of functions in an interrelated manner, and not only as individual activities (Kayakutlu & Buyukozkan 2011). Internationally, the logistics industry can be considered as the base arteries of economic development, therefore as the logistics outsourcing as a main aspect in business. Nevertheless, in recent years, the integration and promotion of 3PL professional services within the supply chain have increased (Huang et al. 2015). For most of the manufacturing firms, logistics is neither their core competency nor a core business function, but an essential function for them to gain competitive advantage (Bulgurcu & Nakiboglu, 2018).

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