Selection Criteria And Performance Measurement Of Third-Party Logistics
Tandir Dr Nataša
International Burch University, Sarajevo, Bosnia and Herzegovina
Hadžiahmetović Dr Nereida
International Burch University, Sarajevo, Bosnia and Herzegovina
Serdarić Mirelma
International Burch University, Sarajevo, Bosnia and Herzegovina
Keywords: Third-party logistics, small and medium enterprises, outsourcing, selection criteria, performance
Abstract
Outsourcing logistics have an important strategy to make the organization more competitive. Companies, especially Small and Medium Enterprises (SMEs), use it to improve them to make plans, act, manage and control the products, services and information flow from the supplier to the customer. It enables faster penetration on the new markets, helps to reduce inventories and gain capacity expertise. Two elements of Third-Party Logistics (3PL) are addressed in this study: (1) selection criteria used in the 3PL selection process, (2) and perceived the performance of 3PLs from the perspective of service users. As the instrument for data collection, a questionnaire was distributed to the managerial staff of SMEs. The study compared the selection criteria of 3PL provider with the perceived performance of the third-party logistics provider. Analysis proved that there is a significant difference between the criteria and perceived value of price, quality, speed of delivery, responsiveness to unforeseen changes, reliable transportation, reliable warehousing, tailor-made service, a wide range of service, fast response to market changes, availability of top management and values good working relations. On the other side, there is no significant difference between the importance of criteria and perceived performance for the following parameter: equipment, reliable transportation, vehicles, financial stability, reputation, low operation costs, high assets turnover, strong international network, strong domestic network and the valuing of a long-term relationship. The study provides valuable information about the logistics market in Bosnia and Herzegovina, gives insight in the quality of the 3PL’s services available on the market and quality of selection process performed by companies which use 3PL services. The research contributes to the future competitive strategy planning and the understanding of the way 3PL can contribute to corporate plans