INFORMATION TECHNOLOGY COMPETENCY IN SELECTION OF 3PL SERVICE PROVIDER FOR BUSINESSES

Abstract

Businesses in the traditional approach were working labor-intensive and the processes such as sales, manufacturing, warehousing, transportation were carrying out by themselves. However highly competitive environment today, requires to be much more professionalized in the aforementioned processes. Therefore being open to innovation and continuous development have become an obligation for businesses. But this approach when considered for the whole processes is quite costly. Wide spread use of outsourcing within the last ten years, with the contributions of developments in the information and communication systems, has alleviated the overall costs on businesses. In this way all operations maintained more quickly, reliable, and economical by providing also the customer satisfaction. Outsourcing decisions are strategic decisions and there are also risks, as well as the advantages. Therefore before taking these kind of strategic decisions serious studies need to be done. One of the most important selection criteria here is the ability of the information technology of the existed 3PL service provider. The details related with the ability of the information technology that are not taken into account may cause to significant losses while selecting the 3PL service provider. So, the importance and priority of using information technology for companies while selecting 3PL service providers are examined in this study. Aforementioned study performed by evaluating the data obtained from the interviews done with the companies by the method of content analysis. As a result, information technology qualification detected as an important criteria for companies during the selection of 3PL service providers. Transportation planning and implementation, customer order management, warehouse/distribution center management software products are identified as the most necessary programs among information technology qualification.