Journal Article Review 1 - BUSI - 613.docx

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Running head: JOURNAL ARTICLE REVIEW 1 1 What Drives the Choice of a Third-Party Logistics Provider? Dr. Brooke Quigg BUSI 613-B01 Lee Troope Liberty University May 12, 2019
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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. doi:10.111/1.1745-493X.2011.03223.x Statement of the Author’s Purpose The main purpose or idea of this article, which the authors discuss, is third-party logistics choosing the right providers within the supply chain management by deciding the proper factors driving the decision of the right providers. Since consumers want the right product or service at the right price at the right time, supply chain management right partnership selection “helps add value to existing products and services by improving market access, building financial strength, strengthening operations, enhancing organizational skills, adding technological growth, and enhancing strategic growth” (Liberty University, 2019, pp. 247-248). In this article, the authors use a sample of 309 managers who play a critical role within logistics services purchasing across various countries and industries to explore the importance of seven service attributes. From this sample of 309 managers, the authors came to the realization of three distinct decision models that preference service attributes, such as, delivery performance and price. The results suggests that these two service attributes contrast significantly between customer groups of the distinct decision model. Therefore, the authors’ predominant premise of this research article provides that customers have different preferences and perceived value of service offerings regarding the firm’s selection of a third-party logistics provider. Consequently, two research questions became the focus of the research in this article. “From the set of service components that influence the choice of a third-party logistics provider, which components matter most” (Anderson, Coltman, 2
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Devinney, & Keating, 2011, p. 98)? “Are the preferences of different customers sufficiently distinct to enable segmentation” (Anderson et al., 2011, p. 98)? Application of Supply Chain Management Theory Relevant to Article In today’s global business environment, more and more businesses utilize third-party logistics to manage their supply chain. Due to these changes in the global business environment, third-party logistics services are trending at a rapid growth rate (Sanders, Locke, Moore, & Autry, 2007). Even with the growth of third-party logistics, it is challenging the providers of third-party logistics to recognize the expectations of the consumers and most importantly determine what drives their choice of choosing a third-party logistics provider (Power, Sharafali, & Bhakoo, 2007). Therefore, logistics plays a significant role in integrating the supply chain of industries.
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