Strategic Postures of 3PL Service Providers in Hong Kong

1. Strategic Postures of 3PL Service Providers in Hong Kong

3. Introduction

6. Literature review

8. Research methodology

10. Research methodology Mail survey methodology: Questionnaire design

11. Mail survey methodology

12. Results and Discussion

13. Classification of Competitive Strategies

16. Classification of Competitive Strategies

18. From the results of the study, some important managerial implications can be drawn. Choice of strategy Our study shows that companies that have achieved differentiation pure outperform pure cost companies, one of the reasons may be due to the changing requirements of logistics users like manufacturers and distributors whose demand more than basic and cheap services. The implication for pure cost companies is that they must review their current strategy and see if they want to run their business in the low cost segment with higher competition and relatively lower return of investment. If they want to achieve higher business performance, they have to develop competencies to offer new differentiating services and move away their low cost orientation. Formulation of Operations Objectives Type I and Type II companies are putting cost reduction as one of their key objectives. Type III companies emphasize on the improvement of flexibility of their operations and providing more value added services to their customers. Type IV companies relatively not interested in further reduce their operation cost mainly due to the fact that further reduction may not be possible. An implication is that many low cost Type I companies are now attempting to move to become Type II companies. Type II companies will keep on their differentiation strategy by providing better services in delivery, design, as well as offering at reasonable prices. Type III companies are prepared themselves for the future by offering flexibility in their operations to cope with the ever changing demand from the customers. These companies are closely working with their customers to understand their needs and services required and aim to provide more value to their customers. Competing in the future In this study, we found competition in logistics industry is very keen, in order to survive, logistics providers must be sensitive to their customer’s needs and must seek to meet the expectation of their customers as much as possible. The Type II and Type III companies have indicated improving service quality, and reducing response time are their top future imperatives. To achieve these, employee training has to be conducted regularly to improve human resources. Logistics executives should be aware that due to rapid development in logistics industry recently in Hong Kong, supply of qualified logistics professionals may be not adequate. As such, education institutions and government should provide more resources to develop and offer more logistics courses and training programs to fulfill the needs of the logistics industry. The posture of these high performers also indicates that service quality, reliability and cost are the qualifiers, and business performance are correlated with service design, service performance, and the ability to provide flexibility to meet customer requirements. the impact of the integration of Hong Kong and China economy. The impact of the integration of Hong Kong and China economy is one of the major factors that the logistics management should be considered. From the results of the study, some important managerial implications can be drawn. Choice of strategy Our study shows that companies that have achieved differentiation pure outperform pure cost companies, one of the reasons may be due to the changing requirements of logistics users like manufacturers and distributors whose demand more than basic and cheap services. The implication for pure cost companies is that they must review their current strategy and see if they want to run their business in the low cost segment with higher competition and relatively lower return of investment. If they want to achieve higher business performance, they have to develop competencies to offer new differentiating services and move away their low cost orientation. Formulation of Operations Objectives Type I and Type II companies are putting cost reduction as one of their key objectives. Type III companies emphasize on the improvement of flexibility of their operations and providing more value added services to their customers. Type IV companies relatively not interested in further reduce their operation cost mainly due to the fact that further reduction may not be possible. An implication is that many low cost Type I companies are now attempting to move to become Type II companies. Type II companies will keep on their differentiation strategy by providing better services in delivery, design, as well as offering at reasonable prices. Type III companies are prepared themselves for the future by offering flexibility in their operations to cope with the ever changing demand from the customers. These companies are closely working with their customers to understand their needs and services required and aim to provide more value to their customers. Competing in the future In this study, we found competition in logistics industry is very keen, in order to survive, logistics providers must be sensitive to their customer’s needs and must seek to meet the expectation of their customers as much as possible. The Type II and Type III companies have indicated improving service quality, and reducing response time are their top future imperatives. To achieve these, employee training has to be conducted regularly to improve human resources. Logistics executives should be aware that due to rapid development in logistics industry recently in Hong Kong, supply of qualified logistics professionals may be not adequate. As such, education institutions and government should provide more resources to develop and offer more logistics courses and training programs to fulfill the needs of the logistics industry. The posture of these high performers also indicates that service quality, reliability and cost are the qualifiers, and business performance are correlated with service design, service performance, and the ability to provide flexibility to meet customer requirements. the impact of the integration of Hong Kong and China economy. The impact of the integration of Hong Kong and China economy is one of the major factors that the logistics management should be considered.

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