Enhancing supply chain information sharing with third party logistics service providers

Abstract

PurposeThis study evaluated the enhancement of information sharing practices with third party logistics service providers (3PLs) in a supply chain solutions company that provides transport and warehousing software in Johannesburg, South Africa.Design/methodology/approachA mixed methods case study was conducted to investigate the problem. Both strands of quantitative and qualitative data were given equal priority. Three rounds of primary data were sequentially collected, analysed and triangulated. An online questionnaire was distributed to a sampling frame of seventeen companies which were randomly selected from the population. Three company executives were purposively sampled to participate in a focus group interview. Data from an open-ended questionnaire were used to explain and validate the findings from clients and executives who participated in the two preceding rounds of data collection.FindingsIt was found that information sharing improves the collaboration of channel members, increases competitive advantage and ultimately leads to better customer service. The improvement of relationships and continuous technological upgrades are recommended for improving visibility of information and effectiveness in the management of supply chains.Research limitations/implicationsThis study is limited by the characteristics of the case study methodology. Case study research suffers from restricted generalisability, problems with cross-checking and the risk of bias and subjectivity. This implies that the results of this case study may not be generalised to the overall population. The selection of a mixed methods design was intended to curb the limitations that are inherent to this study.Practical implicationsThis study was limited to a few respondents and participants, which raises concerns about both the statistical power and the generalisability of the results. However, the results provide useful insights into some of the information sharing practices in the industry.Originality/valueThe value of the study contributes to the supply chain's dependence on 3PLs for value creation and the reliance on technology to share information amongst channel members. This study highlights a need for organisations to build collaborative relationships with 3PLs and continuously update technological infrastructure in order to meet supply chain network goals.