Determinants of scale efficiency in the Brazilian 3PL industry: a 10-year analysis

Abstract

This paper focuses on the Brazilian third-party logistics (3PL) sector which, facing increasing competition, offers clients a wide variety of services/IT technologies in the quest to bolster efficiency. The main research objective is to determine which variables significantly impact the 3PLs' scale efficiency by applying a two-stage DEA model. Based on an unbalanced panel model, secondary data from the annual study published by Revista Tecnologística (years 2001–2010) were collected and analysed. The required inputs and outputs for the analysis were identified, as were the contextual variables that can affect the scale efficiency of the 3PLs. The results support findings in the literature regarding the role coordination processes play in logistics performance. Managerial implications for both shippers and 3PLs are discussed.