The significant role of third-party logistics (3pl) operators as fosterers of organizational performance in colombian companies

Abstract

The removal of barriers between countries is a consequence that comes along with globalization and the several FTA (free trade agreements) signed in recent years. This implies a significant growth of international trade, which is reflected on a higher complexity in the organizations’ supply chains all over the globe. Because of this, the search for alternatives to achieve high levels of productivity and competitiveness within companies is necessary in Colombia, since the environment has become increasingly complex, saturated with both local and foreign competitors. To maintain a favorable competitive position, companies must focus on the activities that add value to their business. To do so, one of the alternatives is the outsourcing of logistics functions to firms specialized in the handling of these services. Such companies are called the Logistics Service Providers (LSP); this is an external entity to the organization which manages, controls and provides logistics activities on behalf of a contractor. The activities may include all or part of the whole logistics activities, but at least the management and implementation of transport and storage must be included (Berglund, 2000). The purpose of this paper is to analyze the role of Third Party Logistics (3PL) operators as fosterers of organizational performance in Colombian companies, in order to inform MSMEs (micro, small and medium enterprises) about the benefits of working with Logistics Service Providers (LSP) as a means for the improvement of the country’s competitive position.