The creation of an axiomatic paradigm for third-party logistics (3PL) providers in the Philippines

Date of Publication

2006

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Business Management with Applied Corporate Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Abstract/Summary

Logistics, which is deemed to be a very important component of a company’s supply chain, is one area that is commonly delegated to third parties nowadays. Third Party Logistics (3PL) is relatively a new topic amongst educators, students and companies. It is therefore important to take an in-depth look on how a core component can be performed by an external partner and attain beneficial results both for the company and the service provider. This paper will delve into how they operate and function side by side with their clients and what variables affect their working relationship. The very core of this paper indicates how 3PLs attain business sustainability in the process of servicing their clients. A chapter in this study highlights some of the important issues of the 3PL industry here in the Philippines. A survey conducted by SyCip, Gorres and Velayo (SGV) Co./Andersen’s Business Consulting Group indicated a growth in outsourcing company activities to third-party service providers, particularly the logistical functions. According to the respondents of the survey, their supply chains have improved by as much as 95% when they used the services of 3PL companies. Moreover, they indicated that they regard their 3PL providers as business partners. Through an exhaustive review of literatures pertaining to logistics and the 3PL industry, the proponents of this study has developed an axiomatic paradigm that depicts how 3PLs operate and attain business sustainability. The said axiomatic paradigm was validated based on the operating model used by IDS Logistics Philippines, one of the most prominent third-party service providers in Asia today. The proponents were able to point out the various internal and external variables necessary for 3PLs to operate. Importance is stressed on maintaining a collaborative relationship between the 3PL provider and the customer for them to attain business sustainability or a win-win situation wherein the customers’ requirements are met and the 3PLs are able to further develop their expertise. Another indicator of business sustainability is the long term relationship between the 3PL and their customer that is grounded on trust. A final axiomatic paradigm is presented at the latter part of the study that captures precisely the operations of 3PL providers. The proponents recommend for future researchers to undertake a comprehensive study of the 3PL industry in the Philippines. This would further validate the model and also add improvements to it.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU13342; CDTU013342

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

77 numb. Leaves ; Computer print-out.

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