Using 3pl Technologies in Supply Chains

¶ … Transportation and Logistics

Assessment of Technology Adoption In

Small and Medium-Sized Logistics Providers

Assessment of Technology Adoption By

Small and Medium-Sized Logistics Providers

The adoption of technologies for streamlining and unifying supply chains globally continues to show promise as a means to take supplier coordination and product quality to a new level transparency and velocity. Of the many aspects of technology adoption throughout supply chains, the contributory effects of information and communication technologies (ICT) in third party logistics providers (3PL) has become a leading indicator of an industry's ability to adapt to turbulent market conditions (Brah, Lim, 2006). Despite the many benefits of adopting technologies in 3 PLs and across supply chains, there are many factors that limit their use. The study Technology Adoption in Small and Medium-Sized Logistics Providers (Evangelista, McKinnon, Sweeney, 2013) highlights the challenges small and medium logistics providers face in adopting ICT-based solutions throughout their businesses. The study centers on existing ICT adoption in small and medium 3PL services providers, concentrating on the process areas that are most well-attuned to automation. As supply chains become increasingly global and complex, the need for greater technology integration at the 3PL level becomes essential for profitable operation (Bourlakis, Bourlakis, 2005). The role of 3 PLs was established decades ago as a critical building block in successful supply chains (Kerr, 1989). The methodology of this study concentrates on these issues with the goal of determining which factors most limit technology adoption across the fastest-growing strategy of 3PL providers, the small and medium-sized businesses breaking into new markets.

Methodology

The study used in Technology Adoption in Small and Medium-Sized Logistics Providers (Evangelista, McKinnon, Sweeney, 2013) is designed to capture qualitative data using focus groups that in turn drives case study analysis. Both qualitative research approaches are then used for structuring and providing the framework for the questionnaire survey. The researchers have chosen to begin with a focus group to capture the most relevant research questions to frame their hypotheses first, followed with in-depth case study analysis of seven small, high growth 3 PLs. The combination of qualitative factors in the focus groups and case studies serves as the foundation for hypothesis testing using the questionnaire survey sent to 153 small and medium-sized 3PL companies. This triangulated approach to defining the research methodol9ogy ensures that the most relevant questions are included in the overall analysis.

The researchers mention that the focus groups and case studies provide a theoretical foundation for verifying their research questions and also serve as a means to more succinctly frame their hypothesis as well. Data collection for the focus groups and case studies involve personal interviews and face-to-face contact with respondents. The researchers chose to use print questionnaires sent via regular mail to the 153 small and medium-size 3PL providers. Using random number generation to select the 153 small and medium 3PL providers, the researchers structured the data design and sampling frame to ensure an orthogonally-based and statistically representative sample of all Italian 3PL providers (Evangelista, McKinnon, Sweeney, 2013). The researchers' decision to create a triangulated research design providers insights into how small and mid-sized 3 PLs make decisions on ICT investments and the relative priority of technology spending in their total budget. The focus groups and case studies provided insights into which factors potentially contribute the least and most to the predisposition on the part of small and medium-sized 3 PLs to adopt technologies. The research design successfully captures the qualitative aspects of ICT adoption by small and medium-sized 3 PLs while providing a foundation for quantifying their contributory effects to the broader research methodology. Figure 1, Hypothesis Overview, provides a mapping of how each hypothesis is contributing to the mission of the study, which is to measure ICT adoption by small and medium-sized 3 PLs.

Figure 1: Hypothesis Overview

Source: (Evangelista, McKinnon, Sweeney, 2013)

Evaluation of Research Study

The researchers have successfully designed and executed a research methodology that sets a strong theoretical foundation for answering all research questions and hypothesis. What's unique about this study is how the researchers have chosen to blend the qualitative aspects of focus groups and case studies with a secondary phase of quantitative-based surveys. The reliance on initial qualitative data capture (focus groups, case studies) sets the quantitative questions in the right context to capture data that can be measured at the ordinal and interval levels of statistical relevance (Evangelista, McKinnon, Sweeney, 2013). By doing this, the researchers have created a foundation for establishing the statistical significance of research questions using inferential statistical theory (Evangelista, McKinnon, Sweeney, 2013). By taking this approach, the methods of data collection and analysis are sufficient to answer the research questions, as the researchers have paid careful attention to create contextual reference to each hypothesis (Evangelista, McKinnon, Sweeney, 2013). Based on this methodology, the research results are realistic, given the methods of data collection and analysis.

In terms of methodological weakness, the surveys sent to 3 PLs had a low response rate and could have been better administered by using telephone calls to preface the survey followed by e-mail. This would have provided greater context regarding the academic nature of the surveys and enquired a higher response rate. There is also the issue of sampling bias and self-selection bias as the researchers did not define a specific respondent profile within a 3PL company to receive the survey (Evangelista, McKinnon, Sweeney, 2013).