3PLSPs in Pakistan: An Exploratory Study on Fleet Induction Decision, MRO, Term of Service, Unique Business Models, Term of Hiring &amp; Outsourced Fleet Retention, Fueling and Fee Charging Strategies, Adopted by MNCs and Domestic Firms
Creators: name: Siddiqui, TI(M), Zeeshan Noor
Publisher: name: figshare
Year: 2023
Subjects: Logistics
Supply chains

description: A lot of studies have been conducted on 3PLSPs (Third Party Logistics Services Providers), mostly encompassing users’ perspectives like; outsourcing vs in-house transportation models, causes of 3PLSP selection, service level requirements, attributes of good SPs (Service Providers) and region specific requirements of SPs. There are very few studies on Pakistan and most of the work done on Pakistan is industry specific and lacks general perspective. Studying the perspectives of 3PLSPs is among less researched areas, thus this study is focused to analyze the issues which are the back hand issues but ultimately affect the customers, being in the centre of the stage of every business. Three (3) intended IVs (Independent Variables); Fleet Induction decisions, MRO (Maintenance Repair Operation) and Terms of Services Contract alongwith Three (3) additional IVs (emerging out during data collection and analysis from industrial practitioners and expert); Outsourced Fleet Retention, Fueling Strategies and Unique Business Model are analyzed for adoption of Fee Charging Strategies by both; MNCs and Domestic 3PLSPs, working in Pakistan, from public as well as private sector. Phenomenological research model of qualitative research approach has been used and primary data has been collected through open ended detailed interviews with one practitioner each from PTN (Perfect Transport Network) and SAZ (Saeed-Adnan-Zaheer) Logistics (Pvt) Ltd, representing domestic, private sector and three professionals from NLC FS (Freight Services), representing domestic public sector as well as a professional from Agility Logistics (Pvt) Ltd, to represent MNCs, working in Pakistan. An expert has also been interviewed who has worked in NLC FS, Agility and PTN, before joining his recent assignment, in UBL. Findings and analyses of interviews revealed that diversified fleet induction strategies are being followed by different SPs ranging from 100 % equity to Leasing through financial institutions to unique induction model i.e Leased vehicle induction. Terms of services also varied from spot or walk-in customers to 1-5 years blanket contracts to Allocation model are being followed with different SPs for different clients. MRO has been found to be in-house, in case of most of the SPs, yet OEM (Original Equipment Manufacturer) MRO and a hybrid of both have also been seen in different SPs. A unique model for service provision, designed by PTN for KE (Karachi Electric, formerly known as KESC; Karachi Electric Supply Corporation) and unique induction model of SAZ Logistics for ATT (Afghan Transit Trade) are unique findings of the study. Analysis, recommendations and policy guidelines will help, not only the users of 3PLSPs (the business) by getting an insight of back hand of SPs, the industry of 3PLSPs by learning the best practices, the researchers by the opening of new avenues for further research and the government for formulating more pragmatic and industry oriented policies in the years to come.