| dc.description.abstract | Third-party logistics（3PL）companies focus on logistics activities to provide differentiation and cost advantages, as well as high value-added services, to achieve the purpose of strategic outsourcing of customers. Faced with industry competition and changes in the business environment, 3PL companies should actively review and re-plan their business models. They should have unique resources and capabilities to provide unique value in the market, construct cost leadership competitive advantages and/or differentiation competitive advantages, and thereby obtain higher performance and profits to achieve the goal of sustainable business operations.
This study takes the example of 3PL company A in Taiwan, which faced changes in logistics business strategies of its major clients, from full-package to choosing multiple suppliers for subcontracts. Its major clients were also acquired by another company, and the market expected those clients to switch their logistics to inhouse operation. The industry also faced enveloping threats from competitors, as large real estate developers offered high-quality warehouses and developed vertically integrated warehousing and transportation subsidiaries as a total solution provider with automated equipment suppliers. The problem of labor shortage due to an aging population resulted in service level issues, where overtime replaced labor shortages, causing an increase in personnel costs and occupational hazards, and a vicious cycle of increasing risks of high frequency of occupational accidents and difficulty in hiring new employees. These issues caused business losses and increased costs, leading to a significant decline in revenue and profits.
This study reviews and re-plans the business model of 3PL through a case study approach, and through participant observation and literature research, captures the opportunities and threats faced by logistics enterprises in Taiwan′s 3PL industry through five-force analysis. By using VRIO analysis, it identifies the strengths and weaknesses of the internal resources and capabilities of 3PL company A. It then uses SWOT analysis to match industry opportunities and threats with internal strengths and weaknesses and develop feasible competitive strategies for company A.
The study found that to achieve its goal of sustainable business operations, 3PL company A should expand its business scope and develop customized services to meet customer demands, such as expanding into cold-chain logistics for retailing customers and process logistics for electronic industries. It should also enhance customer stickiness by alliancing with large real estate developers to jointly develop modern and high-quality logistics warehouses and depotsto solve the external threat of increasing warehouse and depot rental costs. This partnership can be achieved by investing in automated warehousing equipment systems with the capital of the real estate developers. It should also collaborate with automated equipment suppliers to train and cultivate talents in automated operations and operational management. The company should also strengthen its marketing and business development capabilities to attract more customers, expand business scale, and thereby increase revenues for future investment and expansion. | en_US |