Third-Party Logistics.docx

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Running Header: What drives the choices of a third-party logistic provider? Third-party Logistic Providers BUSI 613-B01 Liberty University Anderson, E. J., Coltman, T., Devinney, T. M., & Keating, B. (2011). What drives the choice of a third-party logistics provider? Journal of Supply Chain Management , 47(2), 97-115.
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What drives the choices of a third-party logistic provider? Purpose This journal review’s purpose is to define and discuss the hardships companies face with the variety of customer demand, where it can be challenging for companies that specialize in logistics to be able to comprehend how the value customers place on service (Anderson, Coleman, Devinney, & Keating, 2011). Anderson et al highlights the components that are critical in a customer’s decision of a logistics service provider by conducting studies on mangers that hold a centralized role in acquiring services throughout a variety of industry markets and countries. Additionally, it is important for third-party logistic providers to understand drivers for customer choice to meet their expectations and reach customer satisfaction (Hertz & Alferdsson, 2003). Globalization and outsourcing as well as other factors have played a contributing role to this interest in logistics. The purpose of the article demonstrates how adjusting third-party logistics services to tailor the differing customer preferences. Application of supply chain management theory relevant to the article Supply chain management integrated into third-party logistics is important, however several organizations are not succeeding at integrating internally and externally. This is primarily a result of trends of outsourcing because “a significant part of a products value-added function is committed and traced to external functions, the role of integration and how effective integration takes place is very important in the current global landscape” (Jayaram, 2010).
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