A fuzzy AHP and TOPSIS methodology to evaluate 3PL in a supply chain

2012 ◽  
Vol 7 (3) ◽  
pp. 287-303 ◽  
Author(s):  
Pravin Kumar ◽  
Rajesh K. Singh
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Fuzzy Ahp ◽  
Integrated Approach ◽  
Third Party ◽  
Preference Ranking ◽  
Relative Importance ◽  
Content Type ◽  
Logistics Service Providers ◽  
Hierarchy Process

PurposeThe purpose of this paper is to provide an insight into the use of an integrated approach of fuzzy analytical hierarchy process (fuzzy AHP) and TOPSIS in evaluating the performance of global third party logistics service providers for effective supply chain management.Design/methodology/approachIn this study, the integration of fuzzy AHP with TOPSIS is proposed in determining the relative importance (weight) of criteria and then ranking of 3PLs.FindingsFindings show that the logistics cost and service quality are two most important criteria for performance rating of 3PLs. Deciding the relative importance of various criteria for 3PLs evaluation is a complex task. The superiority of one criterion over the other varies from person to person and firm to firm. Therefore, to capture the variability in decision fuzzy extended AHP is very useful tool. Finally, the preference raking of alternatives are found using TOPSIS.Research limitations/implicationsFuzzy AHP is a complex methodology and requires more numerical calculations than the traditional AHP and hence it increases the effort. But in this paper single stage fuzzy AHP is used to simplify the process. Fuzzy AHP is integrated with TOPSIS for preference ranking of 3PL, which provides a good methodology to rank 3PLs.Originality/valueThere is a lack of research in the literature to deal directly with the uncertainty of human decisions in evaluating the relative importance of multiple criteria. Therefore, fuzzy AHP is an appropriate methodology to find the relative importance of the criteria to rank the 3PLs using TOPSIS.

Assessment of risks associated with third-party logistics in restaurant supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saket Shanker ◽  
Hritika Sharma ◽  
Akhilesh Barve
Keyword(s):  
Supply Chain ◽  
Fuzzy Ahp ◽  
Risk Index ◽  
Relative Weight ◽  
Evaluation Framework ◽  
Third Party ◽  
Preference Ranking ◽  
Third Party Logistics ◽  
Content Type ◽  
Index Value

PurposeThe restaurant network is reforming rapidly due to the advancements encountered so far in the restaurant–third party logistics (3PL) collaborations. These collaborations resulting from a strategical partnership between the restaurant and the 3PLs play a significant role in getting a good handle on the web, logistics activities, online business and many more services. Despite the collaborations, 3PL in the restaurant supply chain is associated with many risks that may hamper the supply chain's profitability. In this study, several risks related to 3PL are investigated and analysed.Design/methodology/approachDeciding the relative importance of different risks is an intricate errand. The predominance of one risk over the others changes from individual to individual and ?rm to ?rm. Therefore, to catch the changeability in choice, the fuzzy analytical hierarchy process (AHP) is an extremely valuable tool used in this research. In addition to this, fuzzy AHP is incorporated with fuzzy TOPSIS for preference ranking of 3PL risks in the restaurant supply chain and obtain risk index value, which provides an excellent approach to rank the risks. Furthermore, we performed a sensitivity analysis to analyse the stability of the results obtained in this study.FindingsResults indicate that “macro-level risks” (i.e. the risks associated with 3PL in the restaurant supply chain due to political agitation in the district, cataclysmic events, ailments like COVID-19, bird influenza, etc.) is the most relevant first-level risk with high-risk index as well as high relative weight. As per the analysis of second-level risks, the occurrence of cataclysmic events holds the most elevated risk index value.Practical implicationsThis research provides the restaurant industry and the 3PL with a generalized framework with set parameters that can be used to attain a successful 3PL in the restaurant supply chain of any developing nation.Originality/valueThis research proposes an evaluation framework for the risk assessment of third-party logistics in the restaurant supply chain. This paper explores risks for efficient implementation of 3PL in the restaurant supply chain. From a managerial perspective, the rank table is also provided with the goal that mitigation of the risks can be done quickly.

scholarly journals Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective

2015 ◽  
Vol 20 (6) ◽  
pp. 631-647 ◽  
Author(s):  
Vasco Sanchez Rodrigues ◽  
Irina Harris ◽  
Robert Mason
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Third Party ◽  
Supply Chain Performance ◽  
Content Type ◽  
Distribution Costs ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Wide Range ◽  
Stage 1

Purpose – The paper aims to develop a supply chain-driven model horizontal logistics collaboration (HLC). HLC initiatives can fail. To improve the chance of success, a thorough consideration of the potential issues involved, such as seeking supply chain partners’ support, ensuring access to information/data security and assessing whether an HLC model could bring improvements to a wide range of supply chain metrics rather than reductions in distribution costs only, needs to be understood before deciding to proceed with such an initiative. Design/methodology/approach – A two-stage methodology is deployed. As part of Stage 1, a series of 20 semi-structured interviews with senior managers from retailers, retailers’ suppliers and logistics service providers were undertaken. Subsequently, in Stage 2, a focus group with practitioners from retailers and logistics service providers was run to verify the findings gathered during Stage 1. Four elements of a new HLC project being considered are investigated by supply chain champions across the UK Fast-Moving Costumer Goods industry, namely, consideration factors, required synergies, enablers and anticipated output metrics. Findings – When considering whether to embark on an HLC project, the supply chain requirements need to be taken into account and potential supply chain performance benefits projected. The paper identified several consideration factors; synergies and enablers that support the development of HLC projects are identified, such as legislation, trust among partners, common suppliers and delivery bases, capable third party logistics (3PL) and an effective commercial model, including a fair sharing of benefits. Research limitations/implications – The research provides new understanding in accounting for the needs of the supply chain when considering an HLC initiative involving leading players from the retail sector. Practical implications – The importance of taking a supply chain approach when evaluating the feasibility of HLC is demonstrated. HLC arrangements among competing supply chains need to be designed and run by taking account of all supply chain partners, namely, suppliers, 3PLs and customers (in this case, retailers). Originality/value – The contribution is threefold: identification of outset consideration factors, ideal required synergies, actioning enablers and wider supply chain metrics of HLC; development of a supply chain-driven model for HLC, which includes in the decision-making whether or not to adopt a horizontal logistics collaboration model, wide supply chain metrics such as stock levels of finished products and shelf availability, inventory, working and fixed capital, and product waste in addition to distribution costs; and, the proposal of a new definition for HLC which challenges published definitions.

scholarly journals Environmental alignment between logistics service providers and shippers – a supply chain perspective

2020 ◽  
Vol 31 (3) ◽  
pp. 575-605
Author(s):  
Maria Huge-Brodin ◽  
Edward Sweeney ◽  
Pietro Evangelista
Keyword(s):  
Supply Chain ◽  
Stakeholder Theory ◽  
Success Factors ◽  
Service Providers ◽  
Three Dimensional ◽  
Content Type ◽  
Study Approach ◽  
Logistics Service ◽  
Sustainable Logistics ◽  
Logistics Service Providers

PurposeVarious suggested paths for greening logistics and supply chains often address the specific perspectives of single supply chain actors. Drawing on stakeholder theory, the purpose of this paper is to develop a deeper understanding of the alignment between logistics service providers (LSPs) and shippers in the context of adopting more environmentally sustainable logistics practices.Design/methodology/approachWith a case study approach, a dual perspective is taken in which both LSPs and shippers were researched. The cases comprise eight LSPs and six shipper companies in Sweden, Italy and Ireland. Information was first analysed in relation to levels of environmental awareness, customer requirements and provider offerings and critical success factors (CSFs) and inhibitors. In a second step, the findings were analysed using stakeholder theory.FindingsLSPs demonstrate higher ambition levels and more concrete offerings compared to shippers' requirements for green logistics services. Paradoxically, customers are an important CSF and also an inhibitor for both LSPs and shippers. Both LSPs and shippers perceive financial factors and senior management priorities as important CSFs. The application of stakeholder theory helps to illuminate the importance of the many secondary stakeholders vs that of one or a relatively small number of primary stakeholders.Originality/valueThe three-dimensional analysis of environmental alignment between LSPs and shippers reinforces existing knowledge and provides new insights. A novel use of stakeholder theory in a supply chain context underlines its usefulness in research of this kind.

Supply chain performance measurement for third party logistics

2014 ◽  
Vol 21 (6) ◽  
pp. 944-963 ◽  
Author(s):  
Dhanya Jothimani ◽  
S.P. Sarmah
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Asset Management ◽  
Real Life ◽  
Integrated Approach ◽  
Third Party ◽  
Supply Chain Performance ◽  
Third Party Logistics ◽  
Content Type ◽  
Scor Model

Purpose – The purpose of the paper is to explore the applicability of the Supply Chain Operations Reference (SCOR) model and to identify the key performance indicators (KPIs) for the service-oriented sector – namely a third-party logistics (3PL) service provider. Design/methodology/approach – The performance attributes of SCOR model (reliability, responsiveness, flexibility, cost measures and asset management efficiency) are used as the basis for defining the KPIs. A questionnaire was sent to relevant decision makers. Findings – This paper illustrates the use of the integrated approach of SCOR, fuzzy analytic hierarchy process (FAHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for measuring the supply chain performance (SCP) in the light of a real life case study company. Research limitations/implications – This method forms the basis for performance measurement using the SCOR model to evaluate strategy. In this work, the performance of the company has been compared with its own previous performance. The work can be extended to external benchmarking and also to other sectors. Practical implications – The paper attempts to overcome the conflict between the top-down strategy and bottom-up implementation process. The paper links the strategic objective with operations which would aid managers at different levels of an organization with decision making. The KPIs, when implemented in a business intelligence (BI) tool, would result in real time performance measurement. Originality/value – The paper focusses on 3PLs. It provides a base for measuring the SCP using SCOR model. The paper also identified KPIs for three domains of 3PL, namely freight forwarding, customs and warehousing.

3PLSP scale for co‐operative dairies in Indian context

2012 ◽  
Vol 24 (3) ◽  
pp. 515-532 ◽  
Author(s):  
Tejas R. Shah ◽  
Mahendra Sharma
Keyword(s):  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type ◽  
Five Dimensions ◽  
Stable Factor ◽  
Logistics Service ◽  
Indian Context ◽  
Operational Level ◽  
Logistics Service Providers

PurposeThe purpose of this paper is to develop a scale for measuring benefits of third party logistics service providers for co‐operative dairies in an Indian context. The objective is to measure benefits of third party logistics service providers for co‐operative dairies.Design/methodology/approachA standard scale development research procedure recommended by experts was followed. First, the literature review of studies to measure benefits of third party logistics was undertaken. Later, Delphi method was used. Interviews were conducted of experts and customers for understanding and generating items for measuring benefits of third party logistics service providers for co‐operative dairies. A survey was then undertaken first for development of the scale and later for validation purpose.FindingsA reliable and valid scale is developed to measure the five dimensions of benefits of using 3PLSPs for co‐operative dairies: responsiveness, accuracy, customization of service, inventory handling and order processing and information sharing.Research limitations/implicationsThis scale is developed to outsource logistics functions at operational levels in the context of co‐operative dairies in India. So, this scale can be tested for co‐operative dairies of countries other than India. The scale can also be tested where outsourcing of logistics activities is done at operational level, other than co‐operative dairies.Practical implicationsThe proposed scale can be used as a diagnostic tool to identify important benefits to consider in outsourcing operational function of logistics management to 3PLSPs in co‐operative dairies.Originality/valueMost relevant studies about benefits of third party logistics service providers do not have stable factor structure, especially for co‐operative dairies. The new scale fills the gap of the absence of a validated scale to measure benefits of 3PLSPs for co‐operative dairies at operational level.

Information Technology and Supply Chain Management Coordination

2013 ◽  
pp. 134-150
Author(s):  
Pier Paolo Carrus ◽  
Roberta Pinna
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Service Providers ◽  
Coordination Mechanism ◽  
Third Party ◽  
Third Party Logistics ◽  
Chain Management ◽  
It Capability ◽  
Logistics Service ◽  
Logistics Service Providers

Logistics Service Providers (3PL) have become important players in supply chain management. In a highly competitive context characterized by “time compression”, a successful strategy depends increasingly on the performance of Logistics Service Providers as they play a key integrative role linking different supply chain elements more effectively. However, the role of the information technology capability of these 3PL has not drawn much attention. The research question is: can IT be viewed as a fundamental supply chain management coordination mechanism? If so, does IT capability of third party logistics providers to improve performance in the supply chain and become a bigger factor in a strategic buyer-3PL relationship? By drawing on earlier research on the supply chain management coordination mechanism, the IT capability of third party logistics providers, a case study is conducted.

Strategic logistics outsourcing: upstream-downstream supply chain comparison

2017 ◽  
Vol 10 (3) ◽  
pp. 309-333 ◽  
Author(s):  
Saleh Fahed Alkhatib
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Integrated Approach ◽  
Fuzzy Decision Making ◽  
Logistics Outsourcing ◽  
New Approach ◽  
Content Type ◽  
Strategic Objectives ◽  
The Impact ◽  
Fuzzy Quality Function Deployment

Purpose The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success factors (ISFs) and linking them with the firm’s strategic objectives and logistics requirements. Then, the new integrated approach will be used to compare the outsourcing processes for the upstream and downstream supply chain members. Studies of logistics outsourcing reveal the strategic importance of this process and the increasing need for new strategic approach. Design/methodology/approach The design is based on mixed methodology and integrated approach. The fuzzy decision-making trial and evaluation laboratory technique has contributed to the construction of interdependent relationships, development of impact-relationship maps (IRMs) and identifying ISFs. The fuzzy quality function deployment technique was used to link the strategic objectives, logistics requirements and the ISFs to evaluate and select logistics service providers (LSPs) strategically. Finally, two case studies (upstream and downstream supply chains) are used to demonstrate the new approach effectiveness and to highlight the differences/similarities between the two streams. Findings In addition to the new strategic logistics outsourcing approach, this study analysed the impact relationships of the LSPs’ framework factors and constructed their maps. In all, 21 ISFs have been identified: 8 logistics key performance indicators, 7 logistics services and activities and 6 logistics resources and capabilities. The two streams’ comparison relived several differences in terms of strategic objectives, logistics requirements and ISFs. Research limitations/implications The new approach for strategic logistics outsourcing can help firms to perform a better multi-stakeholder multi-criteria strategic outsourcing process. In addition, the upstream–downstream supply chain comparison increases our understanding how different supply chain members perform different outsourcing processes. Originality/value This is one of the pioneering studies that compares the supply chain upstream–downstream perspectives to highlight logistics outsourcing similarities and differences. To the best of author’s knowledge, this is one of the first logistics outsourcing studies that identifies ISFs for strategic logistics outsourcing, provides the first IRMs for the strategic logistics factors and develops a new integrated approach for strategic logistics outsourcing

Sustainable evaluation and selection of potential third-party logistics (3PL) providers

2018 ◽  
Vol 25 (1) ◽  
pp. 76-97 ◽  
Author(s):  
Rakesh Raut ◽  
Manoj Kharat ◽  
Sheetal Kamble ◽  
Chandra Shekhar Kumar
Keyword(s):  
Supply Chain ◽  
Environmental Sustainability ◽  
Selection Criteria ◽  
Integrated Approach ◽  
Integrated Model ◽  
Decision Makers ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type ◽  
Selection Of

Purpose The purpose of this paper is to efficiently assist the decision makers in evaluating and selecting the most appropriate third-party logistics (3PL) provider from environmental sustainability perspective using a two-phase model based on data envelopment analysis (DEA) and analytic network process (ANP). Design/methodology/approach The study uses an integrated approach of DEA and ANP as an evaluation and selection methodology to select an efficient and requisite 3PL. The integrated model is a sound technique for 3PL evaluation and selection. DEA effectively screens the maximally efficient 3PLs, whereas ANP easily performs the cumbersome process of weighting diverse criteria and ranks various alternatives according to their performance on the basis of these criteria. This study lists the prominent evaluation and selection criteria taking into consideration the environmental sustainability. Finally, a real-life industrial application is presented to demonstrate the proposed method. Findings The current research work is devoted to the emerging research topic of environmental sustainability in logistics industry and supply chain management. The results of study indicate that eco-efficient transportation and 3PLs lead better transportation planning, better inventory and warehouse management, lower inventory cost and sustainable supply chain operations. Also, the applied approach enables the decision makers to better understand the complex relationships of the relevant criteria in the decision-making process. Research limitations/implications This study does not investigate the relationships between environmental performances and differentiation advantage from the perspective of 3PLs. Also, sensitivity analysis is not performed. Practical implications The developed integrated model enables decision analysts to better understand the complete evaluation process of 3PL evaluation and selection considering environmental sustainability perspective. Furthermore, the developed approach provides a more flexible, simple, accurate, effective, and systematic decision support tool for 3PL evaluation and selection. Originality/value The current study is first of its kind to use the integrated approach in evaluation and selection of 3PLs from environmental sustainability perspective considering the inter-dependencies among the evaluation and selection criteria.

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