Improving logistics performance in cross-border 3PL relationships

ABSTRACT

This paper proposes guidelines for improving logistics performance in terms of cost efficiency and on-time delivery in shipper–third-party logistics (3PL) provider relationships within an offshore outsourcing context. A conceptual framework is constructed based on a thorough literature review. Empirical data are collected through semi-structured interviews in a single-case study with a dyadic perspective, examining the 3PL relationship between Ericsson of Sweden and Aramex of Saudi Arabia. Accordingly, a revised framework is proposed after illustrating the case and merging the literature with practice. The findings highlight the impact of communication, trust, culture, system compliance, work agreements, and standardisation on cost efficiency and on-time delivery performance. The developed framework illustrates a sequential order for working on these factors to achieve performance improvement. This research is one of the first to propose guidelines for performance improvements within offshore outsourcing of 3PL services.

KEYWORDS:

• Third-party logistics
• offshore outsourcing
• logistics performance
• 3PL relationships

Disclosure statement

No potential conflict of interest was reported by the authors.