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Review of Pharmaceutical Sea Freight and Malaysian Third-Party Logistics Service Providers—A Supply Chain Perspective

  • Wai-Peng WongEmail author
  • Keng-Lin Soh
Chapter
Part of the Lecture Notes in Logistics book series (LNLO)

Abstract

Logistics is the backbone of trade because it integrates the supply chain for trade facilitation of all businesses including pharmaceuticals. The objective of this article is to review pharmaceutical ocean logistics trends and issues, and four Malaysian third-party logistics (3PL) research publications consisting of service quality, cost and service differentiation, integration and information system of freight-forwarding and container freight. The publication review is to ascertain if third-party logistics are potentially capable of supporting ocean pharma non-cold chain freight to pre-empt medicine shortages and identify challenges of the logistics supply chain. The research showed logistics service quality impacts customers’ satisfaction, low costs and service differentiation influence firms’ sustainable financial competitiveness, integration of depot and hauliers enhances national logistics performance, information system affects supply chain integration (SCI), and SCI affects operational and environmental performance. These studies involved third-party logistics service providers (LSP) along the supply chain which were freight-forwarding companies and their customers, and the container depots and hauliers. The review provides research evidence of logistics service quality potentially capable of meeting the requirements of conventional ocean-going non-cold chain pharma container freight as featured in professional logistics publications. Medicine shortages attributed to freight forwarders are unlikely noting their agility and robustness in the face of economic uncertainties. They are agile enough to manage factors internal and external to the firms. The research also provides suggestions to the SCI challenges confronting the conventional ocean container freight supply chain at the depot-haulier interface to forestall delays. This article reviews relate to research investigations of 3PL in Malaysia, a country sitting in the heart of Southeast Asia.

Keywords

Pharmaceutical sea freight Malaysia Third-party logistics 3PL Logistics Southeast Asia 

List of Abbreviations

AOA

Availability of Alternatives

AVE

Average Variance Extracted

CFAI

Cross Functional Application Integration

CR

Composite Reliability

DC

Data Consistency

EP

Environmental Performance

FTQ

Functional logistics service quality

GDP

Gross Domestic Product

HTMT

Heterotrait-monotrait ratio of correlations

IF

Integration factors between Depots and Hauliers

II

Information Integration

IS

Information System

LPI

Logistics Performance Index

LSP

Logistics Service Providers

LSQ

Logistics Service Quality

MBV

Market-based View

OE

Operational Efficiency

OI

Operational Integration

OP

Organizational Performance

PDSQ

Physical Distribution Service Quality

RBV

Resource-based View

SAT

Satisfaction

SC

Supply Complexity

SCI

Supply Chain Integration

SD

Supply Dynamism

SE

Supply Environment

SI

Supply Importance

SQ

Service Quality of Depot

TNQ

Technical logistics service quality

3PL

Third Party Logistics

Notes

Acknowledgements

The first author would like to thank COST Action CA15105, European Medicines Shortages Research Network, addressing supply problems to patients (Medicines Shortages). Further thanks are extended to the Academy of Sciences Malaysia, British Academy and Newton-Ungku Omar Fund (grant number 304/PMGT/650912/B130 and 304/PMGT/6316295) to complete this research project.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.School of ManagementUniversiti Sains MalaysiaUSMMalaysia
  2. 2.INTI Penang International CollegeBayan LepasMalaysia

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