Korean Domestic Third Party Logistics Providers

The objective of this thesis is to contribute to the globalization of Korean domestic third party logistics companies. This is accomplished through a benchmarking model for globalization based on a comparative analysis of domestic and global third party logistics provider (3PLs) companies. The research performed a SWOT analysis to indentify the capabilities required by Korean domestic 3PLs to become global 3PLs. The research investigated the following areas: 1) global service, 2) infrastructure, 3) supply chain management (SCM) services, and 4) information technology (promptness, visibility). This was accomplished by an extensive literature review, case analysis of logistics companies, and telephone interviews with individuals in charge of logistics. Four areas for improvement were identified: 1) Construction of SCM for one-stop service, 2) Utilization of the advanced IT systems for e-SCM, and consolidating communication network, 3) Expansion of logistics infra-structure by analyzing each region of the world for return on investment opportunities and competition, 4) Enlargement of scale in which Korean 3PLs must enlarge their scale of operations as soon as possible by strategic methods such as mergers and acquisitions (M and A) with local companies. There is potential growth for Korean 3PLs if they strive to enhance competitiveness as noted above and have government supports. These improvement areas provide a foundation for global competitiveness.

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