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A Comparison of experienced American and European manufacturers with third party logistics services

Author: Lieb, Robert C ; Millen, Robert A. ; Van Wassenhove, Luk N.INSEAD Area: Technology and Operations ManagementIn: International Journal of Physical Distribution and Logistics Management, vol. 23, no. 6, September 1993 Language: EnglishDescription: p. 35-44.Type of document: INSEAD ArticleNote: Please ask the Library for this articleAbstract: A comparison of third party logistics services utilization between large manufacturing firms in the United States and Western Europe is provided. All of these firms had been utilizing third party providers for at least three years, although many had been doing so five years or longer. The group of Western European firms are more committed to outsourcing, as evidenced by the substantially greater percentage of their total corporate logistics budget allocated to third party firms. The strategic decision to utilize third party companies is more often made at the corporate level and includes input more frequently from other functional areas in Western European firms. However, groups of executives are very similar, such as their reservations to resourcing and their experiences with implementation. Almost all of the executives indicated they are satisfied with the performance of their third party providers, and would at least moderately increase their use of such firms
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A comparison of third party logistics services utilization between large manufacturing firms in the United States and Western Europe is provided. All of these firms had been utilizing third party providers for at least three years, although many had been doing so five years or longer. The group of Western European firms are more committed to outsourcing, as evidenced by the substantially greater percentage of their total corporate logistics budget allocated to third party firms. The strategic decision to utilize third party companies is more often made at the corporate level and includes input more frequently from other functional areas in Western European firms. However, groups of executives are very similar, such as their reservations to resourcing and their experiences with implementation. Almost all of the executives indicated they are satisfied with the performance of their third party providers, and would at least moderately increase their use of such firms

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