A Hayes-Wheelwright framework approach for strategic management of third party logistics services

Abstract

Third party logistics services have a significant role to play in the current trend of outsourcing of the logistics function. From the third party logistics service provider’s perspective, the provider must seek to manage itself strategically in order to win an increasing share of the outsourcing pie. In this paper, we extend the Hayes-Wheelwright framework for strategic manufacturing management to the strategic management of third party logistics service providers. A Singapore-based case example is provided within this context to illustrate the relevance of the Hayes-Wheelwright framework. The case also gives a glimpse into the strategic thinking and practices of a leading Singapore-based service provider in terms of its vision and strategy in building the logistics superhighway within the Asia Pacific Region.