Third Party Logistics Choice

Logistics managers were surveyed regarding decisions (1) to use third party logistics services and (2) practices regarding the selection of third party providers. Responses suggest that decisions to use third party logistics services are not driven by strong preconceptions, pro or con, regarding the attractiveness of the third party option. Further, attitudes toward the use of third party logistics services are not greatly affected by the firm's competitive responsiveness strategy or its perceived external environment. When a decision has been made to use third party providers, a wide range of performance oriented selection criteria are important. But, price considerations are important only after performance criteria have been met, and both the firm's competitive responsiveness strategy and external environment affect the selection criteria. It was concluded that selection criteria were much more affected by performance issues rather than cost issues. Implications for logistics service providers, users, teachers, and researchers are presented.