Article
Third party logistics services usage by large Australian firms
Outsourcing of logistics functions is a business dynamic of growing importance in Australia (for example, see [1]) and elsewhere in the world (see, for example [2,3]. Third party logistics involves the use of external companies to perform logistics functions which 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. The extent of logistics outsourcing in the USA[4] and Western Europe[5] has
been examined in a number of previous studies. However, there has been no systematic study of the experience of Australian firms using third party logistics services. The purpose of this research is to provide such information. Other case studies[6] and a limited number of commercial surveys[7] exist regarding the Australian experience. In general, these sources indicate that an increasing number of Australian firms are choosing to outsource some logistics activities (either partially or wholly). However, this is by no means a uniform trend. For example, a number of key retailers in Australia have taken the opportunity to bring back in house both outsourced transport and warehousing
on the expiration of recent contracts. It is essential, therefore, to gain a clear understanding of general industry practice. Because of the theme of this special issue, a brief description of the Australian transport environment is provided. The subsequent section describes the research methodology which is then followed by the results from the survey.
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