The role of third party logistics providers in Europe - A combined network and systems approach

Third party logistics is a concept that is widely accepted as an alternative to vertical integration. The degree to which it is applied in practice varies considerably. The focus of this research is the role of TPLPs in existing logistics systems, and how they themselves can influence this. This is influenced by the strategic position with which a TPLP is trusted by a shipper, and to some extent by a TPLP's competence and entrepreneurial behaviour towards logistics management. Logistics competence is sourced externally up to the level at which a shipper recognises this to be advantageous. TPL involvement might be influenced by TPLPs' initiatives towards innovative ideas in logistics management. The objectives of this research were to explore different roles that TPLPs can assume in the management of their clients' logistics systems, and the impact of their contribution on logistics performance. This research aims therefore to provide further and better understanding of third party logistics, and to develop a general framework for evaluating the effects of the logistics competence and entrepreneurial behaviour (with regards to their clients' logistics requirements) of TPLPs on logistics outsourcing, and thus the strategic role assumed by TPLPs. At a scholarly level the prevailing contribution of this research is to create further understanding of the TPL phenomenon by examining it from a new perspective. On a practitioner or managerial level this research adds knowledge about the strategic significance of logistics outsourcing, which is directed at shippers and TPLPs. Existing categories of Third Party Logistics providers could be identified according to different degrees of TPL involvement (or logistics outsourcing). Furthermore a positive relationship between TPL resources and skills and TPL proactive behaviour was empirically verified. It was also found that the degree to which TPL providers are involved in their clients logistics systems is in positive relationships with logistics performance