Determination of the success factors in supply chain networks: A Hong Kong-based manufacturer's perspective

S. I. Lao, King Lun Tommy Choy, G. T.S. Ho, Y. C. Tsim, Sai Ho Chung

Research output: Journal article publicationJournal articleAcademic researchpeer-review

13 Citations (Scopus)

Abstract

Purpose: The purpose of the paper is to investigate the factors that affect the decision-making process of Hong Kong-based manufacturers when they select a third-party logistics (3PL) service provider and how 3PL service providers manage to retain customer loyalty in times of financial turbulence. Design/methodology/approach: The paper presents a survey-based study targeting Hong Kong-based manufacturers currently using 3PL companies. It investigates the relationship between the reasons for using 3PL services and the requirements for selecting a provider, and examines the relationship between customer satisfaction and loyalty. In addition, the relationships among various dimensions - in small to medium-sized enterprises (SMEs), large enterprises and companies - of contracts of various lengths are investigated. Findings: In general, the reasons for using 3PL services and the requirements for selecting 3PL service providers are positive-related. The dimension of "reputation" of satisfaction influences "primary customer loyalty" positively. Practical implications: Constructive suggestions are provided to help 3PL service providers allocate their limited resources to business areas that help them to meet the demands of their target customers, increase the number of customers, and improve customer loyalty. Originality/value: The paper is an attempt to help 3PL service providers find ways to survive in a climate of financial crisis.
Original languageEnglish
Pages (from-to)34-48
Number of pages15
JournalMeasuring Business Excellence
Volume15
Issue number1
DOIs
Publication statusPublished - 1 Mar 2011

Keywords

  • Critical success factors
  • Customer loyalty
  • Distribution management
  • Economic depression
  • Hong Kong
  • Manufacturing industries

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Organizational Behavior and Human Resource Management

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