The “Perfect” Warehouse: How Third-Party Logistics Providers Evaluate Warehouse Features and Their Performance

Abstract

The recent trends in logistics outsourcing have led to the need to investigate the 3PL (third-party logistics) industry better. However, the attention has always been focused on operative performance, and the role of the warehouse has been skimmed over. This research aims to define the relationship between warehouse features and the performance indicators of 3PLs, filling the literature gap. This research provides insight into 3PLs’ way of thinking, helping 3PLs identify the right warehouse features to improve their performance and providing guidance for real estate companies in designing warehouses meeting 3PLs’ needs. The analysis uses a case study approach, carried out by interviewing 3PLs that provided data coded according to the dimensions of the Kano model. This methodology was used to generate an in-depth understanding of how 3PLs evaluate the different warehouse features that are able to drive their performance. The “perfect warehouse” is placed in an accessible location; it has loading bays, a standard layout, and a height suitable to optimize the flow of goods, and it utilises the spaces to make the service flexible and responsive. In addition, the warehouse should have internal areas, such as mezzanines, to deliver value-added services.

Keywords

• third-party logistics
• warehouse
• performance measurement
• rating
• Kano model
• service quality