Third party logistics providers (3PL) are defined as the use of external companies to perform logistics functions
that have traditionally been performed within an organization [3]. The functions performed by the third party can
encompass the entire logistics process or selected activities within that process. The significance of an alliance
between enterprises and 3PL depends on the following factors [4, 5]:
(1) utilizing the resources and capability of 3PL to acquire the scale benefits of logistics operation by reducing
the enterprises’ own logistics cost and transaction charge;
(2) making use of 3PL providers’ professional capability and agility to improve the overall operating efficiency
and level of customer service in the supply chain;
(3) reducing or avoiding the investment of enterprises’ logistics establishment to give more resources for
improving the enterprises’ core competencies;
(4) developing a credit base through the supplier alliance to cultivate a symbiotic relationship by increasing the
overall competition advantage of each firm. The 3PL evaluation and subsequent selection of a strategic
alliance partner in a logistics value chain has an important strategic outcome to a firm to achieve superior
competitive advantage. [6]