Title: Land transportation assets' potential future trends and the third party logistics providers in emerging markets, with a case study applied in Brazil

Authors: Douglas Tacla; Rui Carlos Botter

Addresses: Escola Politécnica, Departamento de Engenharia Naval e Oceânica, Universidade de São Paulo, Brazil ' Escola Politécnica, Departamento de Engenharia Naval e Oceânica, Universidade de São Paulo, Brazil

Abstract: This paper looks at third party logistics (3PL) asset strategy options for land transportation in emerging markets through a case study of truck operations in Brazil. The fundamental question to be answered is: what is the preferred business model for a 3PL provider in emerging markets regarding asset ownership? That is, is it preferable for the 3PL to own and operate trucks? An opinion survey was deployed and analysed using statistical methods in association with market trend and financial aspects, interpreting the data in line with concepts identified through a literature review concerning the theme. This study is motivated by the challenges and decisions that the 3PL faces nowadays: whether to act as an integrator, managing and/or owning assets; or develop a business as a Leader Logistic Provider (LLP) managing third parties and/or outsourcing services. Moreover, global companies must integrate their business model in emerging markets with their global strategy. The results indicate that asset ownership may be a good strategy to access specific niches or enter a particular market, but this is not the current tendency of the logistics industry in emerging markets.

Keywords: third party logistics; 3PLs; land transportation; transportation assets; contract logistics industry; Business; logistics in emerging markets; cargo transportation strategy.

DOI: 10.1504/IJLSM.2017.083817

International Journal of Logistics Systems and Management, 2017 Vol.27 No.2, pp.208 - 224

Received: 01 Feb 2016
Accepted: 06 Apr 2016
Published online: 24 Apr 2017 *

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