Logistics service strategies in platform supply chains: a comprehensive perspective

In a recent study published in Engineering, researchers Lin Chen, Ting Dong, Xiang Li, and Xiaofeng Xu have conducted a systematic review of logistics service strategies in platform supply chains (PSCs). With the rapid growth of the platform economy, PSCs have become a crucial part of the global economic system, and logistics engineering management plays a vital role in ensuring their efficient operation.

The researchers focused on three main types of logistics service strategies in PSCs: self-built logistics (SBL), third-party logistics (3PL), and logistics service sharing (LSS). SBL, as exemplified by JingDong (JD), allows companies to have greater control over their logistics operations, ensuring fast and efficient delivery. However, it requires substantial capital investment. 3PL, on the other hand, is widely used by platforms like Pinduoduo. It enables enterprises to outsource logistics to specialized providers, reducing operating costs and allowing them to focus on their core business. LSS is an innovative model that emerges after the development of SBL and 3PL, emphasizing resource sharing among multiple companies, such as the shared logistics platform Deliv.

By analyzing a sample of academic articles from leading databases, the researchers identified several key research topics. For SBL and 3PL, scholars have been interested in finding the optimal logistics service strategy for PSC members and understanding the impact of logistics-related factors on PSCs, including channel selection, platform entry, and sales model. The main factors influencing the choice between SBL and 3PL are service cost and service level, followed by channel, brand, market potential, and competition.

Regarding LSS, it is regarded as an important complement to SBL and 3PL. Key research hotspots include channel, partner selection, and service competition. Service cost is a major factor influencing LSS, with competition, consumers’ logistics preference, and market potential being secondary factors.

The study also proposed several future research directions. First, exploring the collaboration and competition between SBL and 3PL in a multiplatform ecosystem. Currently, most research focuses on single-platform logistics choices, while in reality, there is multiparty competition in PSCs. Second, examining consumer preferences for green logistics services in PSCs, especially in the context of China’s efforts in green technology innovation. Third, incorporating risk-related and uncertainty factors into the research on logistics service strategies in PSCs.

Technological developments also bring challenges and opportunities. Real-time data can enhance supply chain visibility and influence the choice of logistics models. Intelligent robot technology can improve logistics operation efficiency, and green policies will drive PSC members to choose more environmentally friendly logistics solutions.

This research provides a comprehensive overview of logistics service strategies in PSCs, offering valuable insights for both academia and industry. It helps platform-based firms make more informed decisions when choosing logistics strategies, considering factors like service cost, competition, and market potential.

The paper “Logistics Engineering Management in the Platform Supply Chain: An Overview from Logistics Service Strategy Selection Perspective,” authored by Lin Chen, Ting Dong, Xiang Li, Xiaofeng Xu. Full text of the open access paper: https://doi.org/10.1016/j.eng.2024.12.032. For more information about the Engineering, follow us on X (https://twitter.com/EngineeringJrnl) & like us on Facebook (https://www.facebook.com/EngineeringJrnl).