• The Journal of Information Technology
• /
• v.7 no.3
• /
• pp.63-81
• /
• 2004

The third party logistics(3PL) is generally understood as the logistics activities providing a comprehensive logistics services, all or partly outsourced by the customers on a larger term contract basis, ranging from making logistics strategies to implementing information technology services. A lot of companies in advanced countries such as the U.S.A. or some of the European countries have actively outsourced to logistics service providers in efforts to increase the efficiencies in logistics operation rather than doing themselves. In light of these environments, outsourcing to third parties has become a strategic issue demanding greater attention in corporate boardrooms. First, after deciding their logistics outsourcing, the companies have to set up their aims of 3PL through the development of logistical strategies. Second, the companies must decide service provider that fits to their business environment and conditions. As it is reported that 3PL services will bring a high rate of return and its potential will be more signigicant, providers and users of 3PL services and government ministry should prepare the way of improvement of logistics institution and plan to activate 3PL services to reach the advanced foreign countries level.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 1999.04a
• /
• pp.175-175
• /
• 1999

• The Journal of Industrial Distribution & Business
• /
• v.2 no.2
• /
• pp.15-24
• /
• 2011

Modern enterprises should concentrate their efforts on continuous improvements in focusing their development in the core areas of business and to reduce their expenses and to enhance the quality of service for customers. The enterprises should focus on their core business while outsourcing the non-core areas of business to external specialists for the purpose of reducing cost. In South Korea, the enterprises are becoming increasingly interested in outsourcing their logistics function, especially in using IT technologies to the 3PL. The underlying reason for this trend is because the logistics costs of Korean businesses are much higher than that of other advanced countries. This higher logistic costs weakens the price competitiveness of Korean companies in the overseas export markets and even dampening the balance of international trade. Domestically, the higher logistics costs have the effect of raising prices in the local markets and thus affecting the local economy. Therefore a solution is urgently needed to save the logistics costs for the Korean companies in the interest of increasing national competitiveness. Outsourcing to the 3PL is becoming an attraction solution to this problem. Thanks to the increasing supply of professional logistics companies, many of the enterprises are switching to the Third Party Logistics. Nevertheless the enterprises do not yet utilize the integrated third-party logistics services on a full scale. This study analyzes present conditions and problems of the domestic third-party logistics market and suggests directions for future development. To solve the problems in the domestic third-party logistics market, four actions are recommended. First there should be new supporting policies in the laws and regulations and a system for small and medium sized companies to grow. Solutions to structural problems such as abnormal multilevel merchandising, illegal operation of private cars, and freight dumping should be implemented concurrently. Furthermore, standards for new companies entry into the market should be enhanced to allow only the competitive distribution companies to enter the market. Second, development of variety of educational programs is needed through establishing human-resource development system and specialized formal educational institution focused on this market. Third, the third party distribution companies, which seek long-term relationships with the owners of goods, should endeavor to strengthen their communications capability. Fourth, adoption of high-tech distribution system and the advent of U-Logistics, making use of RFID is urgent. This study has the limitation of objectivity because it does not include various comparative case studies about companies relating to the Third Party Logistics and domestic franchise companies. However, this study is significant to the extent that it analyzes the general present conditions and the problems of domestic Third Party Logistics and suggests recommendations for revitalization of Third Party Logistics. For future studies, analyzing the successful cases of international third party logistics companies' empirical data and studying the application into domestic franchise companies would improve the objectivity of the results. This would assist the domestic third party logistics companies not only to perform excellent domestic logistics function but also to enter into the global market for international logistics.

• International Commerce and Information Review
• /
• v.5 no.2
• /
• pp.135-156
• /
• 2003

With the increasing recognition of logistics as a source of potential competitive advantage by companies, there has been a rapid growth in the logistics service industry. In particular increased globalization by multinational corporations has prompted consideration of outsourcing logistics service to third party logistics firms. This paper aims to seek the way to establish logistics information system by the case study of company 'D'. The G-Project, aiming to establish global supply chain including information network was required to form integrated logistics information system between manufacturer and logistics provider. The results should have considerable value to both global manufacturers and logistics providers.

• Culinary science and hospitality research
• /
• v.11 no.4 s.27
• /
• pp.102-117
• /
• 2005

It was maintained that successful establishment and accomplishment of outsourcing might be possible only when those eating-out companies re-establish their concept of management strategy, identify core competencies through value-chain analysis, make a through cost analysis, select cooperative companies via overall screening, expand the area of outsourcing, enhance partnership to improve service quality, harmonize bilateral organization culture, remove the ambiguity of contract terms, protect core competencies of the rest area, continue with evaluation and control, and spinoff or invest to a new specialized business. Then, it was suggested that highway rest area business construct the core competencies and introduce outsourcing from a future-oriented viewpoint so that they can concentrate the competencies to competitive area and expand outsourcing scope to professional area such as finance and accounting, general affairs, personnel affairs, logistics, marketing, and R&D. They need to make out the problem of productivity reduction resulted from many years working employee's old age, refine human resource, and maintain the standards of skill so that they can improve service quality of the rest area, streamline each organization currently having so a large manpower, reduce manpower, and improve the productivity.

• The Journal of Information Technology
• /
• v.7 no.4
• /
• pp.31-45
• /
• 2004

The Understanding of The New Paradigm of Logistics Management is very important competitive factors. Especially, Logistics Outsourcing are receiving increased attention as means of becomming competitive in globally challenging environment. So, This paper presents a in-depth analysis for New logistics management recently and suggest that third-party logistics and its implications for korea logistics strategy is most effectively new logistics management.

• Journal of Korea Port Economic Association
• /
• v.21 no.3
• /
• pp.191-217
• /
• 2005

Ninety percent of an average Chinese manufacturer's time spent is on logistics. Therefore, logistics presents the greatest challenge for multinational companies conducting businesses in China. Although more than 18,000 registered logistics companies exist in China, 85 percent of their revenues are generated from basic trucking and storage services. These facts indicate that China will need increasing presence of high-quality foreign 3PL providers, who are able to provide sophisticated IT systems, industry/operational expertise, standardized operating processes, and international networks, compared to their Chinese counterparts. However, they are facing complicated array of laws and regulations as well as difficulty of finding qualified people to fulfill these needs. There are a number of foreign 3PL providers engaged in China's logistics sector to reap a huge opportunity. Nevertheless, many 3PL foreign providers are still cautious about making large investments. Thus they arelooking for alliances that can provide complementarities instead. Another salient feature of strategy is to take over the transportation assets and warehousing of major Chinese manufacturers and distributors.

• Journal of Korea Port Economic Association
• /
• v.28 no.2
• /
• pp.129-153
• /
• 2012

Even though logistics service outsourcing becomes widespread in manufacturing and service industries, logistics service providers encounter fierce competition and lower profit. Decreased profit has negative impact on service providers' competitiveness, which in turn threats successful relationship with shippers. In this paper, we investigate the factors which influence the performance of service providers. Factors related to service contract are examined and we test an effect of concreteness and fairness of service contract. PLS (Partial Least Square) modeling method is applied and validated using data from logistics service providing companies in Korea. In the model, service contract clauses are classified into two categories including cost and risk sharing terms. PLS analysis shows that partnership and performance of service relationship is improved when contract clauses are specified in detail. This study will contribute in providing an operational direction in effectively establishing a positive relationship between the logistics service provider and the shipper.

• International Commerce and Information Review
• /
• v.9 no.1
• /
• pp.213-233
• /
• 2007

The third party logistics(3PL) is given a definition as logistics activities providing a comprehensive logistics services, all or partly outsourced by the customer on long-term contract basis, ranging from making logistics strategies to implement information technology services. The growth of the Third Party Logistics (TPL) business has been caused many firms to penetrate into the field from different industries. In this study, it is presented to describe a definition and development process of the third party logistics and shown to present strategic issues comparing to third party logistics in foreign and domestic area. and apply to some issues of importance when managing the continued TPL business strategy in domestic area.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.25
• /
• pp.189-210
• /
• 2005

The application of 4PL could allow for the efficiency of many logistics operations to be greatly increased, for costs to be reduced, and for operations to become more responsive to consumer demand. It is also possible that higher services level and lower cost products could become available as a consequence. However, in order to implementing 4PL actually it is very important to be met to fundamental determinants of 4PL such as formation of logistics experts group, providing of total logistics service, capacity of IT, implementation of e-Business model, capacity of logistics consulting, higher logistics service level, logistics cost reduction, re-engineering of logistics process, focus of core competence etc.