Business networking and third party logistics solution for SMEs

Pao Yue-kong Library Electronic Theses Database

Business networking and third party logistics solution for SMEs


Author: Yuen, Yin-ha Eva
Title: Business networking and third party logistics solution for SMEs
Degree: M.Sc.
Year: 2003
Subject: Hong Kong Polytechnic University -- Dissertations
Business logistics
Small business
Business networks
Department: Dept. of Industrial and Systems Engineering
Pages: ix, 103, vii leaves : ill. ; 30 cm
Language: English
Abstract: A general assertion of this dissertation is that firms have a higher likelihood of creating a sustainable competitive advantage and better performance if they have strong logistics capabilities to meet logistics challenges in e-commerce market. Shortened product life cycles and increasingly global competition have caused traditional companies focus on their core competencies, such as product design and development, etc.. The use of third-party logistics or logistics outsourcing further increases a firm's competitive position by leveraging the third-party's expertise in fulfillment and delivery needs in the e-commerce market environment. From this dissertation, we would examine the issues related to outsourcing 3PL (third party logistics service provider) and the way to manage change takes place in the organization. To be competitive from an agility standpoint, companies must adapt their supply chains effectively and build strong relationships with the customers and suppliers more quickly. The measurement construct for logistics outsourcing will also be developed to investigate the impacts of logistics outsourcing on firm performance. We also examine the ways outsourcing increase in the amount of information shared between supply chain partners. As a result, a greater reliance on suppliers and alliance partners has become essential for company survival, which also increased the agility of the supply chain. In this dissertation, we will look into a real case found in a trading firm. We would try to analyze the problems and concerns encountered in managing change from an in-house warehouse operation to outsourcing a 3PL. Also to evaluate how a web-based technology enhances a company's competitive advantage from strengthening the company's core competence and running the business in a more cost effective way. By using this case, insights are being derived from several models, which the synthesized model should be good for replication by other SMEs. SMEs in today's market need to re-think of their current operating model as to strengthen their competitive advantage. In order to survive, it is a necessity to transit their traditional business model (Just product focus) to a Value Network model (customer focus). Though it is a tough and difficult path to make transition to achieve customer intimacy due to the organization's structure, it is in a long-term advantage to build a business networking.

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