Rethinking Logistics in the Platform Age
The world of logistics has come a long way from clipboards and clip-on ties. In today’s digital-first economy, platform supply chains (PSCs) are rewriting the rules of engagement. From retail giants to food delivery services, platforms have taken centre stage, transforming not only how we buy but also how products move from A to B. With that shift comes a pressing question: what logistics service strategies best fit these new, dynamic ecosystems?
A recent systematic review published in Engineering by Lin Chen, Ting Dong, Xiang Li, and Xiaofeng Xu takes a deep dive into this very issue. Their paper, “Logistics Engineering Management in the Platform Supply Chain: An Overview from Logistics Service Strategy Selection Perspective,” lays out the landscape of logistics service strategies for PSCs, drawing a comprehensive map of where we are, what’s driving decisions, and where we might be heading.
Strategic Trifecta
At the heart of the research is a clear breakdown of the three main logistics models powering platform supply chains:
- Self-Built Logistics (SBL)
- Third-Party Logistics (3PL)
- Logistics Service Sharing (LSS)
Each comes with its own strengths, shortcomings, and situational sweet spots.
Self-Built Logistics (SBL) gives platforms direct control over their supply chain. Think of JD.com in China, which has heavily invested in its own delivery infrastructure. The benefits? Lightning-fast delivery and full visibility. The trade-off? It’s expensive. Really expensive.
Third-Party Logistics (3PL), the more traditional route, sees platforms outsourcing delivery to specialists. Pinduoduo is a case in point, relying on existing logistics partners to keep costs down and agility high. It’s a flexible model that lets platforms focus on their core tech and market functions.
Then there’s Logistics Service Sharing (LSS)—the new kid on the block. This model, still in its experimental phase, encourages multiple firms to pool logistics resources via shared platforms like Deliv. It champions efficiency, sustainability, and collaboration. But it also brings its own headaches: coordination complexity, partner alignment, and the risk of service inconsistency.
Why the Strategy Matters
It’s tempting to assume logistics is just about moving boxes, but in platform economies, it’s far more strategic. The research identifies a clear set of factors influencing the choice between SBL and 3PL:
- Service cost: Unsurprisingly, price matters. Firms weigh the upfront investment of SBL against the variable costs of 3PL.
- Service level: Faster and more reliable deliveries often require tighter control.
- Channel complexity: How many partners or sellers does the platform have?
- Brand position: Premium brands may lean toward SBL to maintain consistent customer experiences.
- Market potential and competition: Emerging markets might favour 3PL for quicker scalability.
In the case of LSS, additional drivers include partner compatibility, consumer logistics preferences, and the ability to manage cost-sharing fairly.
Technology as Game-Changer
Tech, as always, is both the disruptor and the solution. As platforms strive for real-time responsiveness, the role of logistics technology becomes critical. From AI-powered route optimisation to autonomous delivery robots and smart warehousing, the logistics layer is rapidly being digitised.
Real-time data, in particular, is reshaping how decisions are made. It enhances visibility, mitigates risk, and enables dynamic service adjustments. For platforms operating across diverse markets, this kind of agility is pure gold.
The study also underlines the role of green logistics in shaping future strategies. With sustainability now firmly on the boardroom agenda, logistics operations are under growing pressure to decarbonise. That means electric vehicles, optimised delivery routes, and warehouse energy efficiency are no longer nice-to-haves—they’re must-haves.
What the Data Says
The research team combed through a broad swathe of academic literature to understand what scholars are focusing on within PSC logistics. The key topics? Optimal strategy selection, channel configuration, and platform entry dynamics. Across the board, there’s strong interest in how logistics models impact sales, consumer behaviour, and competition.
When it comes to LSS, the conversation shifts to shared value creation. Scholars are especially curious about how partners in a shared logistics setup coordinate operations without stepping on each other’s toes.
Interestingly, most research still focuses on single-platform scenarios. Yet in reality, platforms don’t exist in silos. There’s a clear call here for future work to examine what happens when platforms with different logistics strategies compete or collaborate in the same space.
What Needs More Attention
The study highlights three promising directions for future research:
- Multi-platform ecosystems: How do SBL and 3PL interact when platforms coexist and compete in shared markets?
- Consumer preference for green logistics: With sustainability climbing the ranks of consumer values, understanding this preference could shape future logistics offerings.
- Risk and uncertainty modelling: Logistics, by nature, involves plenty of risk—weather, regulatory shifts, labour shortages. Incorporating this into strategy research is overdue.
These gaps point to a broader truth: PSC logistics isn’t just about operational efficiency. It’s about resilience, adaptability, and long-term value creation.
A Bigger Picture for Industry
While the paper is rooted in academic analysis, its takeaways are anything but theoretical. Logistics professionals, supply chain strategists, and platform operators can all draw insights from the findings. For instance:
- Platforms planning rapid regional expansion might consider 3PL as a stepping-stone before committing to SBL.
- Firms entering sustainability-driven markets should bake green logistics into their service models from day one.
- Industry partnerships could unlock new efficiencies through LSS, especially in urban environments where congestion and emissions are under the microscope.
The logistics terrain is shifting fast, and platforms that fail to adapt risk being outpaced.
Embracing a Smarter, Greener Future
All things considered, this research arrives at just the right time. As platforms grow more complex and consumer expectations soar, logistics must keep pace—not just with speed, but with smarts and sustainability.
The evolution of logistics strategies in PSCs reflects a broader transition in global commerce. Efficiency remains crucial, but the compass is clearly pointing towards flexibility, environmental stewardship, and collaborative innovation.
And if there’s one clear takeaway from the study, it’s this: logistics is no longer the back-office function. It’s the front line of competitive advantage.
