Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives

Abstract

Purpose This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics. Design/methodology/approach New Zealand 3PL providers were surveyed, and 166 responses were received. Structural equation modeling was used to test the conceptual model. Findings From the perspective of 3PL providers, uncertainty, frequency and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size and low levels of uncertainty as supporting conditions for the development of 3PP services. Research limitations/implications The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services. Originality/value This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients.

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