Third-party logistics efficiency: an innovative two-stage DEA analysis of the French market

During the last decade, Third-Party Logistics (3PLs) became a key component of industrial organisations and, consequently, of their performance. This article provides an analysis of the productive performance and the determinants of efficiency of a sample of 132 firms (3PLs) in 2016. Our study is the first one on the French market (as part of the European market) and on such a large and recent sample. An innovative second stage analysis is then performed. It identifies the determinants of the benchmark status and that of returns-to-scale in addition to the traditional efficiency scores determinants. The results show very low and heterogeneous efficiency levels. Most 3PLs exhibit increasing returns-to-scale, which explains the current merging trend in this industry. Specialisation is preferable to diversification. Finally, only some of the numerous 3PLs certifications improve efficiency.

Automated summary

This study analyzed the productive performance and efficiency determinants of 132 firms in 2016, revealing low and heterogeneous efficiency levels with most 3PLs exhibiting increasing returns-to-scale. Specialization is preferred over diversification in the industry, and only certain certifications improve efficiency levels.