A study on selection of 3PL and 4PL

Pao Yue-kong Library Electronic Theses Database

A study on selection of 3PL and 4PL


Author: Fok, Pik-yi Carol
Title: A study on selection of 3PL and 4PL
Degree: M.Sc.
Year: 2004
Subject: Hong Kong Polytechnic University -- Dissertations
Business logistics -- Contracting out
Cellular telephone services industry
Department: Graduate School of Business
Pages: v, 63, 9 leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1781755
URI: http://theses.lib.polyu.edu.hk/handle/200/3092
Abstract: Over the past decade, the concept of logistics outsourcing has generated considerable interest in industry. The companies want to reduce personnel costs, transportation and distribution cost by outsourcing their logistics activities to third party. While 3PL is playing an important role in outsourcing logistics, a new term '4PL' becomes increasingly attractive to the industry. Fourth Party LogisticsTM (4PL) is the evolution of supply chain outsourcing, originally invented by Accenture (formerly Andersen Consulting) (Bade, 1999). A 4PL provider is a supply chain integrator that integrates and manages the resources, information, technologies, skills and strategies. Today, mobile phones become one of the most popular consumer products. Due to the time sensitivity and global market competition, mobile phone makers always try to enhance their supply chain. It is also observed that mobile phone makers like using 3PL as their logistics partners, especially the European mobile phone markers. With the outsourcing development from 3PL to 4PL, it is concern that 4PL might replace 3PL to affect the outsourcing strategies of the mobile phone makers. This paper aims to identify the requirements of mobile phone makers in selection of the 3PL service providers and 4PL service providers. We also hope to find out whether the 4PL would substitute the 3PL in the outsourcing strategies of the mobile phone industry. Considering the resource and geographical constraints, we only select the mobile phone markers who have businesses in Hong Kong. We will assess the selection criteria and the degree of requirements that the mobile phone makers will consider when they appoint a 3PL service provider and a 4PL service provider in the future. Subsequently we outline the proposed research methodology, followed by data analysis and discussion of results relating to the survey. Finally, conclusion from this research is presented.

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