Third Party Logistics Relationship Success Factor in Vietnam

Authors

  • Ngo Ngoc Minh Ph.D, Faculty of Business Administration, Industrial University of Hochiminh City, Vietnam Author

DOI:

https://doi.org/10.61841/s1tb7m90

Keywords:

Third party logistics provider, Third party logistics relationship, Operational factor, Automotive manufacturer, Logistics

Abstract

The paper demonstrates that several operational factors are critical needed to establish successful third party logistics relationship (TPLR) between automotive manufacturer (AM) and third party logistics provider (TPL). The five key operational factors examine are known as the use of technology, the price of logistics service, information sharing between AM and TPL, investment on asset and system, as well as logistics service performance. The discussion of the paper is conducted in three case studies in the automotive sector in Vietnam. The originality and novelty of the paper is on its unique context which is focus on the operational factor of TPLR in one specific industry namely automotive, in Vietnam, and the investigation is from a dyadic perspective. Key findings may give positive impact to the practitioners via the development of novel on TPLR (third party logistics relationship) success factor.

Downloads

Download data is not yet available.

References

1. Ahmad, M. F., Zainudin, M. H. H., Hamid, N. A., Ahmad, N. A. A., Rahman, N. A. A., & Nawi, M. N. M. (2019). Critical success factors of lean six sigma and its relation to operational performance of SMEs manufacturing companies: A survey result. International Journal of Supply Chain Management, 8(1), 64–69.

2. Blackhurst, J., Ekwall, D., Martens, B. J., Zailani, S., Subaramaniam, K. S., Iranmanesh, M., & Shaharudin, M. (2015). The impact of supply chain security practices on security operational performance among logistics service providers in an emerging economy: Security culture as moderator. International Journal of Physical Distribution & Logistics Management, 45(7), 652–673.

3. Bryman, A., & Bell, E. (2014). Business research methods (4th ed.). Oxford: Oxford University Press.

4. Du, F., Ang, S., Yang, F., & Yang, C. (2018). Price and distribution range of logistics service providers considering market competition. Asia Pacific Journal of Marketing and Logistics, 30(4), 762–778.

5. Ekeskär, A., & Rudberg, M. (2016). Third-party logistics in construction: The case of a large hospital project. Construction Management and Economics, 34(3), 174–191.

6. Forslund, H. (2009). Logistics service performance contracts: Design, contents and effects. International Journal of Physical Distribution & Logistics Management, 39(2), 131–144. https://doi.org/10.1108/09600030910942395

7. Geyskens, I., Steenkamp, J. E. B. M., & Kumar, N. (2006). Make, buy or ally: A transaction cost theory meta-analysis. Academy of Management Journal, 49(3), 519–543. https://doi.org/10.5465/amj.2006.21794670

8. Ghiani, G., Laporte, G., & Musmanno, R. (2004). Introduction to logistics systems planning and control. John Wiley & Sons.

9. Gong, F., Kung, D. S., & Zeng, T. (2018). The impact of different contract structures on IT investment in logistics outsourcing. International Journal of Production Economics, 195, 158–167.

10. Huo, B., Fu, D., Zhao, X., & Zhu, J. (2016). Curbing opportunism in logistics outsourcing relationships: The role of relational norms and contract. International Journal of Production Economics, 182, 293–303.

11. Jayaram, J., & Tan, K.-C. (2011). Supply chain integration with third-party logistics providers. International Journal of Production Economics, 125(2), 262–271.

12. Lai, F., Tian, Y., & Huo, B. (2012). Relational governance and opportunism in logistics outsourcing relationships: Empirical evidence from China. International Journal of Production Research, 50(9), 2501–2514.

13. Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook (2nd ed.). London: Sage Publications.

14. Miranda, S. M., & Kim, Y. K. (2006). Professional versus political contexts: Institutional mitigation and the transaction cost heuristic in information systems outsourcing. MIS Quarterly, 30(3), 725–753.

15. Rahman, N. A. A., Muda, J., Mohammad, M. F., Ahmad, M. F., Rahim, S. A., & Vitoria, F. M. (2019). Digitalization and leapfrogging strategy among the supply chain member: Facing GIG economy and why should logistics players care? International Journal of Supply Chain Management, 8(2), 1042–1048.

16. Rahman, N. A. A., Mohamad, M. F., Muda, J., Noh, H. M., Majid, Z. A., Rahim, S. A., & Ahmad, M. F. (2018). Linking halal requirement and branding. International Journal of Supply Chain Management, 7(3).

17. Saunders, M. N. K., Lewis, P., & Thornhill, A. (2019). Research methods for business students. New York: Pearson Education.

18. Vaidyanathan, G. (2005). A framework for evaluating third-party logistics. Communications of the ACM, 48(1), 89–94.

19. Vijayakumar, Y., Rahim, S. A., Ahmi, A., & Rahman, N. A. A. (2019). Investigation of supplier selection criteria that leads to buyer–supplier long-term relationship for semiconductor industry. International Journal of Supply Chain Management, 8(3), 982–993.

20. Wallenburg, C. M., & Schäffler, T. (2014). The interplay of relational governance and formal control in horizontal alliances: A social contract perspective. Journal of Supply Chain Management, 50(2), 41–58.

21. Williamson, O. E. (1989). Transaction cost economics. In Handbook of Industrial Organization (Vol. 1, pp. 135–182).

22. Williamson, O. E. (2008). Outsourcing: Transaction cost economics and supply chain management. Journal of Supply Chain Management, 44(2), 5–16.

23. Yin, R. K. (2009). Case study research: Design and methods. Thousand Oaks, CA: Sage Publications.

24. Yuan, Y., Chua, Z., Lai, F., & Wu, H. (2020). The impact of transaction attributes on logistics outsourcing success: A moderated mediation model. International Journal of Production Economics, 219, 54–65. https://doi.org/10.1016/j.ijpe.2019.04.038

Downloads

Published

05.07.2020

How to Cite

Ngo Ngoc Minh. (2020). Third Party Logistics Relationship Success Factor in Vietnam. International Journal of Psychosocial Rehabilitation, 24(10), 4428-4435. https://doi.org/10.61841/s1tb7m90