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3pls Supply Chain Integration

Essay by   •  May 25, 2016  •  Case Study  •  934 Words (4 Pages)  •  832 Views

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Limitations

The research involved a large sample of firms across several factors in the US exclusively. The use of business models is globalized with the combination of 3PLs with local and global presence.

Additionally, the research assumed that contextual factors that influence alliance relationship and perception of firm performance do not provide a systematic effect on any segment of the research sample.

The research also unable to separate the use of 3PLs of focal firms in transportation and warehousing services.

Implementation

  1. Research instrument and respondent profile

The survey instrument was based on a review of pertinent literature and interviews with practitioners and academics. Practicing managers and academics with relevant expertise are experienced a rigorous pre-testing instrument of the research.

At first, a draft is reviewed by a group of academics with expertise in the subject area and senior purchasing and supply managers. The feedbacks received is collected through this review and revised accordingly.

The firm performance measures the firm’s scale, profits, quality level, market share and customers service level. The respondent were the indicators of the importance of various practices on a five-point Likert scale about the integration 3PL selection criteria, 3PL performance evaluation and relationship building.

Data was collected through standard mail survey from senior purchasing, supply and operations managers in the US, identified from the Institute for Supply Management and the Associations for Operation Management (APICS) membership lists. The targeted respondents are warrantied for confidential survey and a summary of survey results is offered.

There are 4071 delivered yielded 411 usable responses for the research h.

  1. Discussion

Based on the four strategic factors included information integration, 3PL selection criteria, 3PL performance evaluation criteria and relationship building, the alliance relationship between manufacturers/wholesalers/retailers and 3PLs of US firms are examined and identified the predicted outcomes of the firm performance

The research demonstrated a strong positive association between the 4 strategic factors of Information Integration, 3PL Selection Criteria, 3Pl Performance Evaluation Criteria, and Relationship Building on Firm Performance.

For the firms that engaged in alliance relationship with 3PLs, the research suggests that monitor the firm performance together with this four-factor would improve the firm performance and attributed to the engagement with 3PLs. By using the correlation coefficients, the rank ordering of these 4 factors suggests that relationship building was the most important enabler, followed by 3PL performance criteria. Thus, this suggests firms that have constrained in resources should focus on creating a climate that enhances trust and commitment with their3PLs. One important thing here is information integration is considered to be an “assumed given” or an order qualifier to warranty optimal firm performance outcomes.

Research question related to understanding whether firm performance, as well as emphasis or investment in strategic enabling 4 factors, vary across the two groups.

First, the research did not result in any statistically significant difference in firm performance. The sample provides the suggestion that the firm performance was not in a high degree of variance that is featured to the difference between supply chain integration. Moreover, a narrower arc of integration is relatively easier to execute and target compared to a wider arc of integration that includes 3PLs. From the answers of respondents, the key to improving the firm performance focused on the right level and form of integration.

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