Viable Options a Shipper has in Using Different Logistic Solutions

Abstract: The research question explores the viable options a shipper has in using different logistic solutions. An investigation was conducted by first understanding the different provider levels based on their activities and then differentiate the logistic solutions based on attributes that are important for a shipper in their supply chain. These attributes were; organization, information technology (IT), flexibility and transportation quality aspects. Once the investigation was done, it was applied on a case study at a shipper to help answer the research question. The study confirms previous findings and provides additional evidence that suggests that generally the logistic solutions definition match with the literature. The evidence shows that the third-party logistics providers need to be redefined due to the fact that they are capable of performing other logistic solutions activities within their company groups. Additional evidence from the shippers indicates that two of three that were contacted do not only use one type of logistic solution in their organizations or company groups. These findings suggest several possibilities of action for Shipper A to proceed in undertaking further studies of what the implications are of changing their current setup to another. Also the study confirms that Shipper A with the research question in mind has a viable possibility to insource to a second-party logistics provider from their current third-party logistics provider setup in certain flows. Other viable possibility is to outsource the third-party logistics provider’s activities to a fourth-party logistics provider. Based on confirmations the results have shown, all PLs are viable to use in all the flows except the African customers that are not able to use any form of second-party logistics providers.