In this paper, we have studied the research field of 3PL providers BD in two different ways.
On the one hand, we review the literature and cover the status quo on BD of 3PL providers.
On the other hand, we follow an exploratory case study approach to analyze the understanding, organizational integration and procedural implementation of BD in the German 3PL providers industry. In the scientific literature, BD of 3PL providers is not yet examined. In leading logistics journals no single publication was identified dealing with BD.
However, the theoretical background shows us individual aspects related to BD of 3PL providers: logistics innovation, new service and new business development as well as customer business development. The case study findings allow a deeper insight in our research field. In this context, we could define BD as the development and expansion of 3PL services business with existing and new customers. Furthermore, we have identified different forms of organizational integration: business development as its own enterprise function, as an activity performed by other enterprise functions - especially sales and tender management - or as an inter-disciplinary task or corporate philosophy of 3PL providers. Besides that, a
Bottom-up
12
proactive process approach, the generation of new business opportunities, and a reactive approach, the respond to customer requests, are described.
As a final theoretical implication we would like to outline a first conceptual framework of BD for 3PL providers in Germany that includes a relation not only to logistics innovations and, in general, business development, but also to our case study findings, see Figure 5.1.
Figure 5.1 First conceptual framework of 3PL business development
The customer-service-matrix differentiates for every field a more strategy-related and a more operative and therefore sales-related approach of BD. The most innovative approach of BD is strategic NBD (new services for new customers). Therefore, a new market has to be cultivated to generate concrete business opportunities. Also, for the other matrix-fields, the operative and strategic BD instruments can be derived. The conceptual framework provides managerial implementations as a complement. 3PL providers can use this matrix for strategic decision making and action planning in BD. Furthermore, they can obtain more transparency about the understanding, types of organization and procedural implementation of BD. In a market characterized, on the one hand, by high potentials in business growth, and, on the other hand, by increasing competition and declining profit margins, these findings are helpful for 3PL providers in order to face their market challenges and win new business more efficiently and effectively.
However, there are some limitations of our study. Firstly, the regional focus is laid on Germany. Therefore, the results are only related to the 3PL services business in this region.
Even if the German 3PL industry is one of the most important logistics market segments in Europe, an analysis and comparison of multiple regions has to follow the trend of internationalization and could help to identify best practices (Maloni and Carter, 2006).
Secondly, only the providers' perspective of BD is considered in our research. An investigation of the 3PL relationship perspective on development and realization of 3PL services businesses would supplement our results (also suggested by Selviaridis and Spring, 2007). Finally, further qualitative and quantitative research is needed in order to analyze cause-effect relationships between different types and practices of BD and performance.
Existing
13
REFERENCES
Andraski, J. C. and Novack, R. A. (1996), "Marketing logistics value: managing the 5 P's", Journal of Business Logistics, Vol. 17 No. 1, pp. 23-34.
Ansoff, H. I. (1965), Corporate Strategy, McGraw-Hill, New York, NY.
Ashenbaum, B., Maltz, A. and Rabinovich, E. (2005), "Studies of trends in third-party logistics usage: what can we conclude?", Transportation Journal, Vol. 44 No. 3, pp. 39-50.
Bass, B. M. (1990), Bass & Stogdill’s Handbook of Leadership: Theory, Research and Managerial Applications, The Free Press, New York, NY.
Bellingkrodt, S. and Wallenburg, C. M. (2013), "The role of external relationships for LSP innovativeness: a contingency approach, Journal of Business Logistics, Vol. 34 No. 3, pp.
209-221.
Berends, H., Vanhaverbeke, W. and Kirschbaum, R. (2007), "Knowledge management challenges in new business development: case study observations", Journal of Engineering and Technology Management, Vol. 24 No. 4, pp. 314-328.
Berglund, M., Van Laarhoven, P., Sharman, G. and Wandel, S. (1999),"Third-party logistics:
is there a future?", The International Journal of Logistics Management, Vol. 10 No. 1, pp. 59-70.
Bertalanffy, L. (1968), General System Theory: Foundations, Development, Applications, George Braziller, New York, NY.
Busse, C. (2010), "A procedure for secondary data analysis: innovation by logistics service providers", Journal of Supply Chain Management, Vol. 46 No. 4, pp. 44-58.
Busse, C. and Wallenburg, C. M. (2011), "Innovation management of logistics service providers", International Journal of Physical Distribution & Logistics Management, Vol. 41 No. 2, pp. 187-218.
Chapman, R. L., Soosay, C. and Kandampully, J. (2003), "Innovation in logistic services and the new business model", International Journal of Physical Distribution & Logistics
Management, Vol. 33 No. 7, pp. 630-650.
Cooper, H. and Hedges, L. V. (1994), The Handbook of Research Synthesis, Sage Publications, New York, NY.
Cowell, D. W. (1988), "New service development", Journal of Marketing Management, Vol.
3 No. 3, pp. 296-312.
Daubenfeld, T., Bergmann, T., Frank, N. and Weidenfeld, L. (2014), "On the current practice of new business development in the German chemical industry", Journal of Business
Chemistry, Vol. 11 No. 2, pp. 87-97.
Daugherty, P. J., Chen, H. and Ferrin, B. G. (2011), "Organizational structure and logistics service innovation", International Journal of Logistics Management, Vol. 22 No. 1, pp. 26-51.
Davenport, T. H. and Short, J. E. (1990), "The new industrial engineering: information technology and business reengineering", Sloan Management Review, Vol. 31 No. 4, pp. 11-27.
Eisenhardt, K. M. (1989), "Building theories from case study research", Academy of Management Review, Vol. 14 No. 4, pp. 532-550.
Ellram, L. M. (1996), "An application of the case study method in logistics research", Journal of Business Logistics, Vol. 17 No. 2, pp. 93-138.
Ellram, L. M. and Cooper, M. C. (1990),"Supply chain management, partnership, and the shipper - third party relationship", The International Journal of Logistics Management, Vol. 1 No. 2, pp. 1-10.
14
Flint, D. J., Larsson, E., Gammelgaard, B. and Mentzer, J. T. (2005), "Logistics innovation: a customer value-oriented social process", Journal of Business Logistics, Vol. 26 No. 1, pp.
113-147.
Forslund, H. (2009), "Logistics service performance contracts: design, contents and effects", International Journal of Physical Distribution & Logistics Management, Vol. 39 No. 2, pp.
131-144.
Frankel, R., Naslund, D. and Bolumole, Y. (2005), "The white space of logistics research: a look at the role of methods usage", Journal of Business Logistics, Vol. 26 No. 2, pp. 185-208, Grawe, S. J. (2009), "Logistics innovation: a literature‐based conceptual framework",
International Journal of Logistics Management, Vol. 20 No. 3, pp. 360-377.
Harzing, A.-W. (2014), "Journal quality list: fifty-second edition, 11 February 2014",
available at: http://www.harzing.com/download/jql_journal.pdf (assessed 19 February 2015).
Helmke, B. and Jung (2007), Business Development und Marketing für Logistikdienstleister, DVZ and Miebach, Hamburg/Frankfurt, Germany.
Hertz, A., Alfredsson, M. (2003), "Strategic development of third party logistics providers", Industrial Marketing Management, Vol. 32 No. 2, 139-149.
Hunter, G. K. (2014), "Customer business development: identifying and responding to buyer-implied information preferences", Industrial Marketing Management, Vol. 43 No. 7, pp. 1204-1215.
Johnson, S.P., Menor, L.J., Chase, R.B. and Roth, A.V. (2000), “A critical evaluation of the new services development process: integrating service innovation and service design”, Fitzsimmons, J.A. and Fitzsimmons, M.J. (Eds), New Service Development: Creating Memorable Experiences, Sage Publications, Thousand Oaks, CA.
Karol, R. A., Loeser, R. C. and Tait, R. H. (2002), "Better new business development at DuPont-I", Research Technology Management, Vol. 45 No. 1, pp. 24-30.
Kind, S. and Zu Knyphausen-Aufseß, D. (2007), "What is business development? The case of biotechnology", Schmalenbach Business Review, Vol. 59 No.2, pp. 176-199.
Klaus, P., Kille, C. and Schwemmer, M. (2011), Top 100 in European Transport and Logistics Services: Market Sizes, Market Segments and Market Leaders in the European Logistics Industry, DVV Media Group, Hamburg, Germany.
Kille, C. and Schwemmer, M. (2013), Top 100 in European Transport and Logistics Services:
Market Sizes, Market Segments and Market Leaders in the European Logistics Industry, DVV Media Group, Hamburg, Germany.
Kille, C. and Schwemmer, M. (2014), Die Top 100 der Logistik: Marktgrößen, Marktsegmente, Marktführer, DVV Media Group, Hamburg, Germany.
Knemeyer, A. M. and Murphy, P. R. (2004), "Evaluating the performance of third party logistics arrangements: a relationship marketing perspective", The Journal of Supply Chain Management: A Global Review of Purchasing and Supply, Vol. 40 No. 4, pp. 35-51.
Knemeyer, A. M. and Murphy, P. R. (2005), "Is the glass half full or half empty?",
International Journal of Physical Distribution & Logistics Management, Vol. 35 No. 10, pp.
708–727.
Koppers, C. and Klumpp, M. (2009), Integrated Business Development, FOM Fachhochschule für Oekonomie & Management, Essen, Germany.
Kuester, S., Schuhmacher, M. C., Gast, B. and Worgul, A. (2013), "Sectoral heterogeneity in new service development: an exploratory study of service types and success factors", Journal of Production and Innovation Management, Vol. 30 No. 3, pp. 533-544.
15
Lambert, D. M. and Burduroglu, R. (2000), "Measuring and selling the value of logistics", International Journal of Logistics Management, Vol. 11 No. 1, pp. 1-18.
Langley, C. J. Jr., Albright, D., Ryerson, R. p. and Collins, N. (2015), 2015 Third-Party Logistics Study: The State of Logistics Outsourcing, Penn State University, Capgemini Consulting, Penske and Korn Ferry, University Park, PA, Atlanta, GA and Reading, PA.
Large, R. O., Kramer, N. and Hartmann, R. K. (2011), "Customer‐specific adaptation by providers and their perception of 3PL‐relationship success", International Journal of Physical Distribution & Logistics Management, Vol. 41 No. 9, pp. 822-838.
Leahy, S. E., Murphy, P. R. and Poist, R. F. (1995), "Determinants of successful logistical relationships: a 3PL perspective", Transportation Journal, Vol. 35 No. 2, pp. 5-13.
Leuschner, R., Carter, C., R.; Goldsby, T. J. and Rogers, Z. S. (2014), "Third-party logistics: a meta-analytic review and investigation of its impact on performance", Journal of Supply Chain Management, Vol. 50 No.1, pp. 21-43.
Lieb, K. J. and Lieb, R. C. (2012), "The European third party logistics industry in 2011: the provider CEO perspective", Supply Cain Forum: An International Journal, Vol. 13 No. 1, pp.
2-8.
Lieb, R. C. and Randall, H. L. (1999), "1997 CEO perspectives on the current status and future prospects of the third party logistics industry in the United States", Transportation Journal, Vol. 38 No. 3, pp. 28-41.
Lukassen, P. J. H. and Wallenburg, C. M. (2010), "Pricing third-party logistics services:
integrating insights from the logistics and industrial services literature", Transportation Journal, Vol. 49 No. 2, pp. 24-43.
Maloni, M. J. and Carter, C. R. (2006), "Opportunities for research in third-party logistics", Transportation Journal, Vol. 45 No. 2, pp. 23-38.
Maltz, A. B. and Ellram, L. M. (2000), "Selling inbound logistics services: understanding the buyer's perspective", Journal of Business Logistics, Vol. 21 No. 2, pp. 69-88.
Marasco, A. (2008), "Third-party logistics: A literature review", International Journal of Production Economics, Vol. 113 No. 1, pp. 127-147.
Murphy, P. R. and Poist, R. F. (1998), "Third-party logistics usage: an assessment of
propositions based on previous research", Transportation Journal, Vol. 37 No. 4, pp. 26-35.
Näslund, D. (2002),"Logistics needs qualitative research – especially action research", International Journal of Physical Distribution & Logistics Management, Vol. 32 No. 5, pp.
321-338.
Newman, L. (2011), Shipley Business Development Lifecycle Guide, Shipley Associates, Kaysville, UT.
Nutt, H. (2007), "Increasing delivery value and risk through improved business development capabilities", Contract Management, Vol. 47 No. 8, pp. 8-17.
Olander, M. and Norrman, A. (2012), "Legal analysis of a contract for advanced logistics services", International Journal of Physical Distribution & Logistics Management, Vol. 42 No. 7, pp. 673-696.
Olson, E. M., Slater, S. F. and Hult, G. T. M. (2005), "The performance implications of fit among business strategy, marketing, organization structure, and strategic behavior", Journal of Marketing, Vol. 65 No. 3, pp. 49-65.
Pearson, B. (1976), "A business development approach to planning", Long Range Planning, Vol. 9 No. 6, pp. 54-62.
Prockl, G., Pflaum, A. and Kotzab, H. (2012), "3PL factories or lernstatts? Value‐creation models for 3PL service providers", International Journal of Physical Distribution & Logistics Management, Vol. 42 No. 6, pp. 544-561.
16
Rogers, D. S., Lambert, D. M. and Knemeyer, A. M. (2004), "The product development and commercialization process", International Journal of Logistics Management, Vol. 15 No. 1, pp. 43-56.
Rossi, S., Colicchia, C., Cozzolino, A. and Christopher, M. (2013), "The logistics service providers in eco-efficiency innovation: an empirical study", Supply Chain Management, Vol.
18 No. 6, pp. 583-603.
Sankaran, J., Mun, D. and Charman, Z. (2002), "Effective logistics outsourcing in New Zealand", International Journal of Physical Distribution & Logistics Management, Vol. 32 No. 8, pp. 682-702.
Scheuing, E. E. and Johnson, E. M. (1989),"A proposed model for new service development", Journal of Services Marketing, Vol. 3 No. 2 pp. 25-34.
Schrader, U. and Hennig-Thurau, T. (2009), "VHB-JOURQUAL2: method, results, and implications of the German academic association for business research's journal ranking", Business Research, Vol. 2 No. 2, pp. 180-204.
Selviaridis, K. and Spring, M. (2007), "Third party logistics: a literature review and research agenda", International Journal of Logistics Management, Vol. 18 No. 1, pp. 125-150.
Sink, H. L., Langley, C. J. Jr. (1997), "A managerial framework for the acquisition of third-party logistics", Journal of Business Logistics, Vol. 18 No. 2, pp. 163-189.
Skjoett-Larsen, T. (2000),"Third party logistics - from an interorganizational point of view", International Journal of Physical Distribution & Logistics Management, Vol. 30 No. 2, pp.
112-127.
Soinio, J., Tanskanen, K. and Finne, M. (2012), " How logisticsservice providers can develop value‐added services for SMEs: a dyadic perspective", International Journal of Logistics Management, Vol. 23 No. 1, pp. 31-49.
Stevens, E. and Dimitriadis, S. (2005),"Managing the new service development process:
towards a systemic model", European Journal of Marketing, Vol. 39 No. 1/2, pp. 175-198.
Su, S.-I. I., Gammelgaard, B. and Yang, S.-L. (2011),"Logistics innovation process revisited:
insights from a hospital case study", International Journal of Physical Distribution &
Logistics Management, Vol. 41 No. 6, pp. 577-600.
Van der Merwe, A. P. (2002), "Project management and business development: integrating strategy, structure, processes and projects", International Journal of Project Management, Vol. 20 No. 5, pp. 401-411.
Van Laarhoven, P., Berglund, M. and Peters, M. (2000),"Third-party logistics in Europe - five years later", International Journal of Physical Distribution & Logistics Management, Vol. 30 No. 5, pp. 425-442.
Wallenburg, C. M. (2009), "Innovation in logistics outsourcing relationships: proactive improvement by logistics service providers as a driver of customer loyalty, Journal of Supply Chain Management, Vol. 45 No. 2, pp. 75-93.
Wrobel, H. (2014), Vertrieb von Kontraktlogistikdienstleistungen: Aktuelle Praxis und Erfolgsfaktoren, DVV Media Group, Hamburg.
Yin, R. K. (1994), Case Study Research: Design and Methods, Sage Publications, Thousand Oaks, CA.
Yin, R. K., Bingham, E. and Heald, K. A., "The difference that quality makes: the case of literature reviews", Sociological Methods and Research, Vol. 5 No. 2, pp. 139-156.
Zhou, G. H. and Wang, X. Q. (2012), "The research on the process of new service development in logistics enterprises", International Journal of Networking and Virtual Organizations, Vol. 10 No. 3/4, pp. 334-345.
17
APPENDIX
Interview guide
1. What do you understand by business development (BD)?
2. Are you practicing BD in your company's third party logistics (3PL) business?
3. What goals are pursued by BD in your company's 3PL business?
4. How is BD integrated in the company's organization structure?
5. How is BD related to other corporate functions e.g. marketing and sales?
6. Who is responsible for BD in your company's 3PL business?
7. What BD activities are performed in your company's 3PL business?
1