Traceability as a tool for the competitive advantage of logistics firms : (a Sri Lankan logistics service providers perspective)

Abstract

Logistics services is an imperative sector of Sri Lankan economy Contributing 2.5% to annual GDP & it provides nearly 50,000 direct Employment opportunities to the citizens. According to the Global Container Port Performance Index (CPPI) 2021, Colombo port was moved to the 22nd among 370 ports globally and Supply chain management services in Sri Lanka inevitably attract many Local & global Service providers. The possibility of traceability integration in a Logistics service providers operation is linked with IT adoption; And conceptual resource-based view (RBV) framework is pertinent to same, which can be led to enhance LSP’s capabilities & firm performance. This paper focus on evaluating the traceability application on a Sri Lankan LSP and its resultant possibilities of enhancing the LSP’s competitive advantage over the Fierce competition. Through the analysis of existing qualitative data, this study has identified the global Traceability solutions in practice, positive negative effects & suitability of them in Sri Lankan context. Recognized websites, journal articles, Previous studies, Publications of application developers, etc. were used as the secondary data sources. This study selected Questionnaire-based survey and the Delphi method as primary data collection methods. The target population and sample include Sri Lankan logistics service providers and commercial customers related to multiple industries. Purposive sampling is used to select appropriate samples which are aligning with the purpose of the research. Primary data assist to determine the market requirement & the opportunity for traceability solutions as a VAS service for LSP’s. Delphi method is conducted to identify & conclude new solutions based on expert opinion. Multiple methods were used for data analysis including central tendency measures, descriptive analysis, Likert scale analysis and error identification and reliability analysis etc. In addition, EXCEL and SPSS software were used to generate outputs from the analyzed data. Several research aspects and many industry attributes were identified through the analyzed data. It is learnt that Sri Lankan logistics service providers can benefit greatly from implementing traceability systems to optimize their operations and deliver better customer experiences as data shows that the market demand does exist for track & trace solutions. By providing real-time information on the movement of goods and materials, 3PL companies can optimize their operations, enhance customer service, and comply with regulatory requirements. Paper suggests that Blockchain technology-based solutions would be effective as it gives comprehensive solution to the engrained problems of the traceability usage, such as contract execution. The findings can inform logistics firms, policymakers, and industry stakeholders in Sri Lanka and other similar contexts about the importance of traceability and its potential benefits. Further research avenues, such as the impact of traceability on supply chain performance and customer satisfaction, could be explored to enhance the understanding of this emerging area.