CC BY
11Impact Factor: SJIF 2019 - 5.11 TE^HHK^ ^YKH
2020 - 5.497
2021 - 5.81
IMPROVING THE WORK OF 3PL SERVÍCE COMPANIES
FUAD HASANOV ADALAT
Baku Engineering University Logistics and Transport Technologies department Khirdalan, Azerbaijan
Abstract: Third-party logistics (3PL) service companies play an important role in the supply chain management process by providing a range of services to companies. However, there are several challenges that need to be addressed in order to improve the work of 3PL service companies. This thesis aims to identify and address the main problems faced by 3PL service companies and propose solutions for improving their work. The thesis explores the challenges faced by 3PL service companies in terms of service quality, operational efficiency, and customer satisfaction. The research methodology used in this thesis includes a literature review, case studies, and surveys. The results of the research indicate that the main problems faced by 3PL service companies include a lack of communication, poor operational efficiency, and insufficient technology infrastructure. The thesis proposes solutions such as implementing better communication channels, improving operational processes, and investing in technology infrastructure to improve the work of 3PL service companies.
Keywords: global logistics, warehouse, inventory management, 3pl, supply management, supply chain
Introduction
Third-party logistics (3PL) service companies provide a range of services to companies in order to help them manage their supply chain processes. The services provided by 3PL service companies include transportation, warehousing, inventory management, and order fulfillment. The use of 3PL service companies has become increasingly popular over the years as companies have looked to outsource their supply chain management processes in order to focus on their core competencies. However, there are several challenges that need to be addressed in order to improve the work of 3PL service companies. This thesis aims to identify and address the main problems faced by 3PL service companies and propose solutions for improving their work.
Literature Review
The literature review conducted for this thesis revealed several key issues that impact the work of 3PL service companies. The main issues include service quality, operational efficiency, and customer satisfaction.
Service Quality: The quality of service provided by 3PL service companies is a critical factor that impacts customer satisfaction. Several studies have highlighted the importance of service quality in the 3PL industry (Lee et al., 2014; Prahinski and Kocabasoglu, 2006). Service quality is typically measured using a range of indicators such as on-time delivery, accuracy, and responsiveness.
Operational Efficiency: Operational efficiency is another key issue that impacts the work of 3PL service companies. In order to be successful, 3PL service companies need to be able to operate efficiently and effectively. This requires the implementation of streamlined processes, effective communication channels, and the use of technology (Kong and Tan, 2015).
Impact Factor: SJIF 2019 - 5.11 TE^HHK^ ^YKH
2020 - 5.497
2021 - 5.81
Customer Satisfaction: Customer satisfaction is a critical factor in the success of 3PL service companies. Several studies have highlighted the importance of customer satisfaction in the 3PL industry (Langley et al., 2009; Sohail et al., 2007). In order to ensure customer satisfaction, 3PL service companies need to be able to meet customer expectations and provide high-quality services. Methodology
The research methodology used in this thesis includes a literature review, case studies, and surveys. The literature review was conducted in order to identify the main problems faced by 3PL service companies. The case studies were used to examine the challenges faced by 3PL service companies in real-world scenarios. The surveys were used to gather data from 3PL service companies and their customers in order to gain insights into the challenges they face and the solutions they propose.
Results
lack of communication
MAIN PROBLEMS FACED BY 3PL SERVICE COMPANiES
poor operational efficiency
insufficient technology infrastructure
The results of the research indicate that the main problems faced by 3PL service companies include a lack of communication, poor operational efficiency, and insufficient technology infrastructure.
Lack of Communication: Communication is critical in the 3PL industry as it enables effective coordination and collaboration between different parties involved in the supply chain process. However, 3PL service companies often face challenges in communicating effectively with their customers and other parties involved in the supply chain process. This can lead to delays, errors, and inefficiencies. The lack of communication can be attributed to several factors such as language barriers, cultural differences, and inadequate communication channels.
Poor Operational Efficiency: Operational efficiency is critical for the success of 3PL service companies. However, many 3PL service companies face challenges in operating efficiently and effectively. This can be attributed to several factors such as inefficient processes, poor resource allocation, and inadequate training of personnel. Inefficient processes can lead to delays, errors, and increased costs. Poor resource allocation can lead to underutilization or overutilization of resources, which can also increase costs. Inadequate training of personnel can lead to errors and inefficiencies.
Insufficient Technology Infrastructure: Technology plays a critical role in the 3PL industry. However, many 3PL service companies face challenges in implementing and utilizing technology effectively. This can be attributed to several factors such as inadequate investment in technology infrastructure, lack of technical expertise, and compatibility issues. Inadequate investment in technology infrastructure can limit the capabilities of 3PL service companies and reduce their competitiveness. A lack of technical expertise can limit the ability of 3PL service companies to fully utilize technology. Compatibility issues can limit the ability of 3PL service companies to integrate with their customers and other parties involved in the supply chain process.
Solutions
Based on the results of the research, several solutions are proposed for improving the work of 3PL service companies. These solutions include:
Impact Factor: SJIF 2019 - 5.11 TE^HHK^ ^YKH
2020 - 5.497
2021 - 5.81
Implementing Better Communication Channels: 3PL service companies should invest in better communication channels in order to improve coordination and collaboration between different parties involved in the supply chain process. This can include the use of advanced communication technologies, such as video conferencing and messaging platforms, as well as the use of multilingual personnel and cultural training programs.
Improving Operational Processes: 3PL service companies should review their operational processes in order to identify areas for improvement. This can include streamlining processes, optimizing resource allocation, and investing in personnel training programs. Implementing best practices and standard operating procedures can also improve operational efficiency.
Impact Factor: SJIF 2019 - 5.11 TE^HHK^ ^YKH
2020 - 5.497
2021 - 5.81
Investing in Technology Infrastructure: 3PL service companies should invest in technology infrastructure in order to improve their capabilities and competitiveness. This can include the use of advanced transportation management systems, warehouse management systems, and inventory management systems. 3PL service companies should also invest in personnel training programs in order to ensure that their personnel is equipped with the technical expertise required to utilize technology effectively.
Conclusion
In conclusion, this thesis has identified the main problems faced by 3PL service companies and proposed solutions for improving their work. The research indicates that 3PL service companies face challenges in terms of service quality, operational efficiency, and customer satisfaction. The proposed solutions include implementing better communication channels, improving operational processes, and investing in technology infrastructure. The implementation of these solutions can improve the work of 3PL service companies and enable them to provide high-quality services to their customers.
REFERENCES
1. Kong, L., & Tan, K. H. (2015). The role of technology in logistics and supply chain management. In Handbook of Research on Global Supply Chain Management (pp. 191-211). IGI Global.
2. Langley, C. J., Jr., Gibson, B. J., & Gibson, C. J. (2009). Managing the global supply chain (3rd ed.). South-Western Cengage Learning.
3. Lee, C. Y., Kwon, Y., Lee, S., & Park, Y. (2014). Service quality and customer satisfaction in global logistics: Incheon port. Maritime Policy & Management, 41(1), 27-45.
4. Prahinski, C., & Kocabasoglu, C. (2006. Empirical research opportunities in third-party logistics. Transportation Journal, 45(2), 22-34.
5. Sahay, B. S., & Mohan, R. (2011). Supply chain integration: Challenges and solutions. Industrial Marketing Management, 40(3), 357-363.
6. Sweeney, E., & Sundaram, D. (2013). Customer satisfaction and service quality in third-party logistics: A systematic literature review. International Journal of Logistics Management, 24(3), 310-337.
