Title: Assessing the Impact of 3PL Integration on Supply Chain Performance
Authors: Mbagwu Ignatius Nwabudo and Akhuewu Emmanuel Eromosele
Volume: 8
Issue: 12
Pages: 7-20
Publication Date: 2024/12/28
Abstract:
This study investigates the impact of third-party logistics (3PL) integration on supply chain performance, drawing on Transaction Cost Theory (TCT) and The Resource-Based Theory (RBT) as theoretical frameworks. Using secondary data, this study employs quantitative analysis to examine the relationship between 3PL integration and supply chain performance. The results show that 3PL integration has a positive impact on supply chain performance, with significant reductions in costs, improvements in efficiency, and enhancements in customer satisfaction. The study also finds that the degree of 3PL integration is positively correlated with supply chain performance, suggesting that deeper integration leads to greater benefits. Theoretical implications of the study suggest that TCT and RBT provide useful frameworks for understanding the impact of 3PL integration on supply chain performance. The study's findings have practical implications for logistics professionals and supply chain managers seeking to optimize their logistics operations and improve supply chain performance. To achieve successful 3PL integration, this study recommends that businesses develop a holistic 3PL integration framework, establish quantifiable metrics to assess 3PL integration outcomes, and cultivate synergistic partnerships with 3PL providers. Overall, this study contributes to the existing literature on 3PL integration and supply chain performance, providing new insights into the benefits and challenges of 3PL integration.