Logistics Cooperation: Integrated Logistics services/Logistinis Bendradarbiavimas: Logistikos Kompleksines Paslaugos

By Meidute, Ieva; Litvinenko, Michail et al. | Business: Theory and Practice, December 2012 | Go to article overview

Logistics Cooperation: Integrated Logistics services/Logistinis Bendradarbiavimas: Logistikos Kompleksines Paslaugos


Meidute, Ieva, Litvinenko, Michail, Aranskas, Arturas, Business: Theory and Practice


1. Introduction

Business entities, operating in increasingly difficult competitive conditions of the continuous development of business and its environment, are forced to strengthen their positions by focusing more on the core (i.e. value generating) activities and gradually moving the performance of other activities outside the company (Nunez-Carballosa, Guitart-Tarres 2011; Rahman 2011). These circumstances have influenced the emergence of the concepts of logistics cooperation, logistics alliance, third party logistics and contract logistics, used to describe such organizational practice in which all of the logistics functions, which were previously conducted by a business entity (i.e., the company) via contracts internally, are now reassigned to other (external) entities to perform.

Nowadays, it is not enough only to deliver the product at the right time to the right place. According to Caceres and Paparoidamis (2007), the clients are demanding more than just a transportation service, not just the high quality of delivery which does not guarantee their competitive advantage anymore. Pollack (2009), Selviaridis and Spring (2007) have agreed with that, emphasising the fact that the clients demand the complex of the services instead of the individual ones. Thus, the practice of outsourcing these services to specialized companies is becoming more common in the business fields since the clients are trying to receive the services of the higher quality, which would enable them to stay competitive (Fecikova 2004; Jaiswal 2008; Rahman 2011; Hsiao et al. 2011; Large et al. 2011).

Competitive logistics companies, setting the long-term goals, should offer their clients the service package characterized by a wide variety, complexity and customization (Jayawardhena 2010; Bitner et al. 1997). The clients are becoming less loyal to one business entity and are looking for new business entities which are able to better satisfy their needs. Yan Yeung et al. (2006) have argued that, nowadays, the practice of outsourcing the logistics services to third parties is continuously increasing; therefore, it is particularly important for the third parties to deliver these services properly (Lee 2005; Kang 2006; Seth et al. 2006; Donnelly et al. 2006; Ismail et al. 2006; Pantouvakis 2008; Lonial et al. 2010; Kersten, Koch 2010; Juga et al. 2010; Rodrigues et al. 2011; Banomyong 2011).

According to Chowdhary, Prakash (2007) and Ismail et al. (2006), consumers and providers of the service usually have different service quality vision. Consequently, it is highly important for the service provider to know what the client expects whereas the client must be sure that the service provider is aware of the expectations (Parasuraman 1998; Donnelly 2006; Seth 2006; Busacca 2005; Gilbert 2006).

Selviaridis (2007) has pointed out that, considering the client's time, expenditures, resources and etc., it is more convenient to receive the whole complex of logistics services from one company than to order them from different companies.

The aim of the present article is to create the integrated logistics services model by carrying out the analysis of the theoretical and practical aspects of third party logistics.

In order to achieve the objectives of the topic of the methodological triangulation, the use of different research methods and analysis of different types of data have been employed: analysis of scientific literature, comparative analysis, systems analysis, methods of conceptual synthesis and expert evaluation.

2. Logistics cooperation: PL types

Party logistics (PL) could be classified according to the principle of the distribution of work. Considering the concept's originality, usage and its analysis in the scientific literature (Gol, Catay 2007; Bolumole 2001; Bottani, Rizzi 2006; Bourlaki, Melewar 2011; Ferahani et al. 2011; Neubauer 2011), the following two groups of party logistics could be distinguished: the basic and the derivative. …

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