In a recent publication in Engineering, scholars Lin Chen, Ting Dong, Xiang Li, and Xiaofeng Xu undertook a systematic review of logistics service strategies within platform supply chains (PSCs). As the platform economy experiences rapid expansion, PSCs have become a fundamental component of global economic infrastructure. Within this context, the role of logistics engineering management has grown more pivotal, ensuring the efficient functioning of supply chain operations mediated through digital platforms.
The study categorises logistics service strategies in PSCs into three principal models: self-built logistics (SBL), third-party logistics (3PL), and logistics service sharing (LSS). The SBL model, as exemplified by companies like JingDong (JD), provides platforms with heightened control over their logistics processes. This approach supports fast, reliable delivery services but necessitates considerable capital investment and infrastructure development. In contrast, the 3PL model, utilised extensively by platforms such as Pinduoduo, enables firms to delegate logistics operations to specialised external providers. This arrangement allows companies to reduce operational expenditures and concentrate on their core competencies.
Meanwhile, LSS has emerged as a novel and collaborative alternative that builds upon the foundation of SBL and 3PL. It encourages the sharing of logistics resources among multiple firms, with shared platforms like Deliv serving as prominent examples. This model aims to enhance logistics efficiency and flexibility through cooperative infrastructure usage.
Drawing upon a diverse sample of scholarly articles from major academic databases, the researchers identified several key themes that dominate the current discourse on logistics strategy in PSCs. For SBL and 3PL models, scholars have focused on optimising logistics strategies to maximise value for PSC participants. These inquiries frequently explore how logistics-related elements influence broader platform operations, including decisions about channel structure, platform entry timing, and sales models. Trade-offs between service costs and quality often shape the choice between adopting an SBL or 3PL approach. Other influencing factors include branding, competitive dynamics, market potential, and distribution channel configuration.
The study finds that logistics service sharing (LSS) is gaining attention as a strategic complement to traditional logistics models. Current research hotspots within LSS include channel strategies, partner selection mechanisms, and competitive dynamics in logistics service provision. Among the critical variables affecting LSS adoption, service cost remains the most influential, while consumer preferences, competitive intensity, and market prospects also play significant roles. The cooperative nature of LSS introduces unique analytical complexities, as it involves multiple stakeholders simultaneously engaging in collaboration and competition.
The study further outlines several promising avenues for future research. One crucial direction involves examining the interplay of SBL and 3PL strategies within multiparty and multiplatform ecosystems. While much of the existing literature centres on single-platform contexts, the reality of PSCs is marked by inter-platform competition and cooperation, which necessitates more nuanced models. Another suggested area of exploration is the role of consumer preference for environmentally sustainable logistics, particularly in light of China’s strategic focus on green technology innovation. A third area involves incorporating elements of risk and uncertainty into logistics strategy frameworks—an increasingly urgent consideration given the unpredictability of global supply chains.
Technological innovation introduces challenges and opportunities for the evolution of logistics service strategies. The increasing availability of real-time data improves supply chain visibility and facilitates more responsive decision-making regarding logistics model selection. At the same time, advancements in intelligent automation—such as robotics—are reshaping the efficiency and scalability of logistics operations. Furthermore, the tightening of environmental regulations and the introduction of green policy frameworks are expected to influence PSC participants to adopt more ecologically responsible logistics practices, potentially transforming the landscape of logistics decision-making.
This research offers a comprehensive and integrative perspective on logistics service strategies within platform supply chains. It bridges theoretical exploration with practical application, furnishing valuable insights for scholars and practitioners. The study highlights the strategic, technological, and environmental considerations involved in logistics decisions and contributes to a more informed and agile approach to managing logistics in digitally mediated supply networks. Platform-based firms, in particular, stand to benefit from these findings as they navigate complex trade-offs between cost, service quality, market competitiveness, and sustainability in the evolving logistics ecosystem.
More information: Lin Chen et al, Logistics Engineering Management in the Platform Supply Chain: An Overview from Logistics Service Strategy Selection Perspective, Engineering. DOI: 10.1016/j.eng.2024.12.032
Journal information: Engineering Provided by Higher Education Press