Determining Factors for Supply Chain Services Provider Selection and Long-Term Relationship Maintenance: Evidence from Greece

Abstract

Background: Due to increased globalization and its subsequent rise in competitiveness, the role of supply chain services (3PL) in managing logistics, reducing operational and non-operational costs, and managing customer and supplier relationships, have become of utmost importance. Customer-centric production has led to the development of a close relationship between production processes. Amidst all this, the demand for logistic services has dramatically increased, thus putting more pressure on firms for enhanced operational results, and leading to the outsourcing of their internal and external logistic activities. On the other hand, supply chain firms that provide 3PL services seek to enhance their sustainability and predict their customers’ demand. Methods: The authors collected quantitative data from 81 firms that operate in various industrial sectors in Greece. A questionnaire was sent for completion, in which firms could rate and evaluate various aspects that were discerned as important for deciding to cooperate with a 3PL service provider and maintain this cooperation in the long run. To extract the required outcomes, statistical analyses like categorical regression (CATREG) and MANOVA were utilized. Results: The demand for 3PL services was affected by 3PL service providers’ operational performance based on accuracy, reputation, and IT capabilities, while the customer firms’ intention for maintaining cooperation with 3PL service providers was affected by their reliability level, improved service efficiency, and trustworthiness. Conclusions: 3PL service providers should seek to improve the reputation, IT infrastructure, and accuracy of their firm's operations to have a continuous demand for their services. Apart from that, 3PL service providers to maintain the cooperation with their customers, need to enhance the levels of their services reliability and efficiency, while also creating a bond of trust with their existing customers.