Using Information Technology To Optimize Operations Of Third-Party Logistics Provider

Abstract

Advancement in information technologies has brought substantial benefits to logistics service providers, e.g. third-party logistics (3PL) companies. The development and application of these technologies such as global positioning system (GPS) are especially important and helpful in transportation and logistics activities that are integral components in any Supply Chain system. Understanding the impact and potential issues brought by using these technologies are of significant importance in global supply chain management. In this research, we investigate the application of GPS-based information technologies to optimize operations of companies providing third-party logistics service. We discuss how these technologies help to enhance the effective and efficient management of their businesses and analyze the interaction of GPS implementation and several key characteristics of the logistic distribution context. We address major benefits and challenges, and provide important insights.