A comparison of the use of third party logistics services by Australian firms between 1995 and 1999

This paper examines the use of third party logistics services by Australian firms over the period 1995 to 1999. It is based on a questionnaire survey that was initially conducted in 1995 and repeated in late 1999. The questionnaire addressed the following issues: the extent to which the firms use the services of contract logistics companies;< the specific contract logistics services used; the benefits which have emerged for the user firms; the obstacles encountered in implementing contract logistics relationships; the impact of the use of contract logistics services on costs, customer satisfaction, and employees of the user firm; and, the future plans of current users of such services. The comparison shows some notable differences between the results from 1995 and those obtained in 1999. Of particular interest is the apparent centralisation of the decision making in regard to employing such services and the involvement of managers outside the logistics area. Also, more firms are utilising third party contract logistics companies for international purposes, and are signing longer contracts with thenproviders. The study identifies a number of concerns for providers that need to be addressed.