Logistique tierce partie | EPFL Graph Search

Third-party logistics (abbreviated as 3PL, or TPL) is an organization's long term commitment of outsourcing its distribution services to third-party logistics businesses. Third-party logistics providers typically specialize in integrated operations of warehousing and transportation services that can be scaled and customized to customers' needs, based on market conditions, to meet the demands and delivery service requirements for their products. Services often extend beyond logistics to include value-added services related to the production or procurement of goods, such as services that integrate parts of the supply chain. A provider of such integrated services is referenced as a third-party supply chain management provider (3PSCM), or as a supply chain management service provider (SCMSP). 3PL targets particular functions within supply management, such as warehousing, transportation, or raw material provision. The global 3PL market reached

75 billion in 2014, and grew to

157 billion in the US; demand growth for 3PL services in the US (7.4% YoY) outpaced the growth of the US economy in 2014. As of 2014, 80 percent of all Fortune 500 companies and 96 percent of Fortune 100 used some form of 3PL services. Third-party logistics providers include freight forwarders, courier companies, and other companies integrating and offering subcontracted logistics and transportation services. Hertz and Alfredsson (2003) describe four categories of 3PL providers: Standard 3PL Provider: this is the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, and distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not quite their main activity. Service Developer: this type of 3PL provider will offer their customers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of scale and scope will enable this type of 3PL provider to perform these types of tasks.

Diversification into logistics

Patrick Mollet

Postal incumbents in Europe have encountered during the last decade fundamental changes in their industry environment, which now threaten their very business model: governments decided to liberalise first the parcel market, then gradually the letter market so as to introduce competition. Substitution by electronic means led at the same time to a decline in mail volume. As a consequence, incumbent operators are losing market share in a declining market, whereas new revenue streams would be needed. International and product diversification have become important strategic moves, which can be found among all players. This dissertation therefore examines these diversification strategies with the focus on diversification of postal incumbents into the logistics business. The methodology consists in the application of theoretical concepts to the research question and subsequent confrontation of the findings with expert interviews and the current economic reality. After a competitive analysis of postal incumbents and after a logistics industry analysis, the dissertation carries out strategic analyses for diversifying postal incumbents: it starts out with critical success factors and assesses the attractiveness of the logistics industry, the costs of entry and possible synergies for postal incumbents. The results show that the logistics industry is sufficiently attractive, that the costs of entry are sufficiently low and postal incumbents can profit from relatedness with their historic business to succeed in the business. Relatedness can be found when sharing infrastructure and technology (product relatedness), in network management skills (managerial relatedness) as well as in marketing and sales (customer relatedness). Information technology, network and supply chain management skills, customer and market know-how, area coverage and density, as well as brand/trust are specific critical success factors and therefore relevant for postal incumbents to successfully enter the logistics industry. Within the framework of a SWOT analysis, the following dimensions were tested whether they form strengths or weaknesses for postal incumbents in the logistics industry: products and services, infrastructure, organisation and structure, human resources, and financial performance. Most strengths are valuable resources, but not rare and also imitable or substitutable (resource-based view). Postal incumbents should focus on the quality of their products and services, customer confidence and loyalty, as well as on opportunities for economies of scale in order to outperform traditional logistics operators. As far as strategic groups are concerned, European postal incumbents can be grouped by how their logistics business is positioned and by the share of their logistics turnover compared with total turnover. Both mappings show that German DPWN is the only global player that also operates its logistics businesses completely independently from the core business. Another strategic group includes mainly Nordic postal incumbents that operate on a regional level through an independent logistics business unit, generating a substantial part of their turnover from logistics. Smaller, nationally operating incumbents often add logistics around their core services (mainly letters) whereby the turnover from logistics accounts for a smaller portion of total company turnover. As a result of the analyses, the following set of generic strategies for European postal incumbents aiming at a diversification into logistics can be formulated: "National Hero", "Selective Geographic Expansion", "European Network", "International Player", as well as "Lead Logistics Provider". Logistics business is indeed a promising area of diversification for postal incumbents: the logistics industry is however highly competitive, with very low margins and has not revealed lucrative niches, which could be quickly covered by postal incumbents. Although the market is growing steadily, there are not that many innovation or significant dynamics that would trigger convergence or create new business opportunities for new entrants.

EPFL2008

Diversification into logistics

Patrick Mollet

EPFL2008