Introduction

Citation

Sahay, D.B.S. (2006), "Introduction", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 7. https://doi.org/10.1108/ijpdlm.2006.00536gaa.001

Introduction

About the Guest Editor

Dr B.S. SahayDirector at Institute of Management and Technology, Ghazibad, India. Prior to joining IMT, he was Dean (Research), Professor of Operations Management, and Founder Chairman of Centre for Supply Chain Management at the Management Development Institute, Gurgaon, India. His teaching, research and consulting interest include supply chain management, operations management, productivity management and business modelling. He has published seven books and 130 papers in international/national journals and conferences. IN token of excellence of his research work he has received six awards including three best paper awards. He is on the Editorial Board of seven international and many national journals.

A growing number of organizations are outsourcing select or entire logistics activities to third party logistics (3PL) or fourth party logistics (4PL) service providers not merely as a means to achieve cost efficiency, but also with a long-term strategic objective for creating competitive advantage through increased service and flexibility. This has also gained momentum because of fierce global competitiveness, heightened customer expectations, pressures on profitability and superior supply chain performance. At the sametime, increasing concern about environmental matters, sustainable development and legal regulations has made organizations responsive for reverse logistics (RL) as well.

This special issue focuses on the concept that logistics are not merely a means to cost efficiency, but also a strategic tool for creating competitive advantage through increased service and flexibility. Today, the scope and nature of 3PL is the management of logistic services beyond transportation. The adoption of 3PL is becoming widespread in the industry. The 3PL involves the use of external companies to perform logistics functions that have traditionally been performed within an organization. The functions performed by the third party can encompass the entire logistics process or selected activities within that process.

Similarly, 4PL is the integration of all companies involved along the supply chain. 4PL is the planning, steering and controlling of all logistic procedures (for example, flow of information, material and capital) by one service provider with long-term strategic objectives. These companies are basically 3PL providers that either add these capabilities to their services or form alliances to provide the services. In the development of logistics partnership, 4PLs take these relationships to an advanced level with more integration and the involvement of more partners.

Awareness in the art and science of logistics is continuing to increase. In attempting to better manage the constant flow of returned goods, many retailers and manufacturers have come to realize that an effective RL is an important and strategic part of their business to capture value otherwise unavailable. RL is an issue that has received growing attention primarily about the growing concern about environmental issues and sustainable development besides economic reasons.

This double special issue on “3PL, 4PL and reverse logistics” focuses upon the evolving practice, academic theory and concepts related to the use of the external organizations for outsourcing logistics functions that have traditionally been performed in-house. Today, the scope and nature of logistics outsourcing are greatly expanded from select activities to the steering and controlling of all logistics procedures by service providers.

This first part of the double issue features papers on a range of issues and includes authors from countries as diverse as Denmark, Taiwan and India. The second part of the double issue will follow later in the volume and will include papers on the following themes:

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  3PL practices: an Indian perspective;

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  a comparative study of the use of 3PL by Singaporean and Malaysian firms;

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  a multi-objective 3PL allocation problem for fish distribution; and

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  finally, the role of 4PL as the RL integrator: optimal pricing and return policies.

The objective of special issue had been to present a framework for 3PL, 4PL and RL to manage supply chain effectively and efficiently. The special issue has been able to bring together original contributions that provide theoretical insights, empirical observations and case studies into the rapidly growing complex and uncertain business environment. It is anticipated that the double special issue has been able to highlight research challenges and future research directions. The main intent is to make researchers and practitioners aware of the importance of 3PL, 4PL and RL in managing the supply chain profitably in this rapidly growing digital economy.

I would like to express my sincere gratitude to all the editorial board members for providing full support in bringing out this issue. My most sincere thanks go to the paper contributors who shared their knowledge and research outcomes. I am thankful to all the reviewers who spared their valuable time in reviewing the papers and to the staff of IJPDLM for their high-quality professional assistance during the pre-publication process.

B.S. SahayGuest Editor