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.

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.

Benchmarking the outsourcing factors of third-party logistics services selection: analysing influential strength and building a sustainable decision model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sharfuddin Ahmed Khan ◽  
Shahed Alkhatib ◽  
Zaina Ammar ◽  
Md. Abdul Moktadir ◽  
Anil Kumar
Keyword(s):  
Supply Chain ◽  
Strategic Alliances ◽  
Influential Factors ◽  
Decision Makers ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type ◽  
Decision Factors ◽  
Logistics Service ◽  
Outsourcing Decision

PurposeOutsourcings always affect crucial supply chain functions concerning flexibility and cost. During the decision to outsource and consider third-party logistics service provider selection, decision-makers need to pay more attention to certain critical outsourcing factors such as coordination, integration and cooperation as these key factors are essential to improve overall supply chain performance. The main purpose of this work is to identify the inter-relations among outsourcing decision factors to highlight the most important and influential factors that should be considered and carefully thought through when making outsourcing sustainable decisions.Design/methodology/approachA two-phased methodology has been used in this study. In the first phase, outsourcing decision factors are identified from existing literature and validated by decision-makers from industry and academia. To understand the influential strength and build a sustainable model, the decision-making trial and evaluation laboratory method is used. A courier company in the UAE is considered for implementation.FindingsAll identified and validated factors are segregated into two categories (cause and effect). The result shows that the most influential factors are developing strategic alliances, uncertainty and risk mitigation and deficiency of internal resources for a service.Practical implicationsThere are several insights for industry managers and practitioners. The results of the study may help practitioners and logistics managers to make the logistics service sustainable and more efficient for businesses.Originality/valueThis study focusses on a courier company to understand the interdependencies among outsourcing decision factors; this is unique in this field of literature.

3PL evaluation and selection using integrated analytical modeling

2017 ◽  
Vol 12 (2) ◽  
pp. 224-242 ◽  
Author(s):  
Abhijeet Haldar ◽  
Umer Qamaruddin ◽  
Rakesh Raut ◽  
Sachin Kamble ◽  
Manoj Govind Kharat ◽  
...  
Keyword(s):  
Multiple Criteria Decision Making ◽  
Real Data ◽  
Integrated Approach ◽  
Third Party ◽  
Vendor Selection ◽  
Data Envelopment ◽  
Third Party Logistics ◽  
Content Type ◽  
Practical Implications ◽  
Selection Of

Purpose The purpose of this paper is to propose a framework for evaluating and selecting the most optimal third-party logistics (3PL) service provider vendor among the available ones. Selection is done based on the performance values of the vendors on certain predefined criteria. Design/methodology/approach An integrated approach involving data envelopment analysis (DEA), technique for order of preference by similarity to ideal solution (TOPSIS) and linear programming (LP) problem has been used to develop a new model for the selection of 3PL vendor. First, DEA is used to evaluate the efficiency of each vendor according to the identified criteria. Second, TOPSIS is applied to rank the maximally efficient vendors. Finally, LP problem is stated and solved to ascertain the quantities to be allocated to each maximally efficient vendor in the context of multiple logistics provider. The proposed DEA–TOPSIS–LP (DETOLP) model is finally tested with real-time industry data for 3PL vendor evaluation and selection. The study, thus, proposes a three-step hierarchical technique for selection of 3PL vendor based on the multiple criteria decision-making approach. Findings The paper focuses on assessing the performance of 26 vendors using a combined approach of DEA, TOPSIS and LP. It is observed that vendor V4 outperforms all the considered vendors, which exactly corroborates with the present scenario within the company. Research limitations/implications Exclusion of qualitative criteria for 3PL vendor selection and the judgment of weights for TOPSIS can be considered as the limitations of the present work. The study has significant practical implications for organizations belonging to any sector or industry. It can help them in evaluating the existing 3PL vendors and selecting the most efficient among them. Originality/value This paper deals with a framework modeled for 3PL vendor selection. It is the first attempt to utilize an integrated approach, i.e. DETOLP model for evaluation and selection of 3PL. For assessment of the model, real data from an Indian company has been taken to analyze the result and compare it with the present scenario within the company.

scholarly journals Evaluation and Selection of Nigerian Third-Party Logistics Service Providers Using Multi-Criteria Decision Models

2021 ◽  
Vol 12 (1) ◽  
pp. 135-146
Author(s):  
E.A. Ejem ◽  
C.M. Uka ◽  
D.N. Dike ◽  
C.C. Ikeogu ◽  
C.C. Igboanusi ◽  
...  
Keyword(s):  
Service Providers ◽  
Service Level ◽  
Decision Makers ◽  
Third Party ◽  
Decision Models ◽  
Third Party Logistics ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Selection Of

Abstract This paper is focused on solving the evaluation and selection of 3PL’s by applying multi-criteria decision-making methods. Nigerian Breweries, Nigerian Bottling Company (NBC), AG Leventis, Kobo logistics, and Flour Mills of Nigeria (FMN) were understudied. The main criteria on which evaluation is based were established: Cost, Service level, Financial Capability, Reputation and Long-term relationship. A combination of two quantitative models was adopted in the study. Relevant data were collected through an oral interview with managers and key decision-makers at the companies. SWARA was first applied to the collated data to determine the relative weights of the criteria. Afterwards, the TOPSIS was applied to the weights developed using SWARA and on the performance of the selected service providers. After the analysis, the best service provider was identified as supplier 2 while the worst was supplier 5.

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.

A grey DEMATEL approach to develop third-party logistics provider selection criteria

2016 ◽  
Vol 116 (4) ◽  
pp. 690-722 ◽  
Author(s):  
Kannan Govindan ◽  
Roohollah Khodaverdi ◽  
Amin Vafadarnikjoo
Keyword(s):  
Competitive Advantage ◽  
Customer Service ◽  
Financial Stability ◽  
Selection Criteria ◽  
Grey System Theory ◽  
Third Party ◽  
Main Role ◽  
Third Party Logistics ◽  
Grey System ◽  
Content Type

Purpose – Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper identifies important criteria for 3PL provider selection and evaluation, and the purpose of this paper is to select 3PL providers from the viewpoint of firms which were already outsourcing their logistics services. Design/methodology/approach – This study utilized the grey decision-making trial and evaluation laboratory (DEMATEL) method to develop 3PL provider selection criteria. Because human judgments are vague and complicated to depict by accurate numerical values, the grey system theory is used to handle this problem. Findings – The findings revealed the structure and interrelationships between criteria and identified the main criteria for 3PL provider selection. The most important criteria for 3PL provider selection are on time delivery performance, technological capability, financial stability, human resource policies, service quality, and customer service, respectively. Practical implications – The paper’s results help managers of automotive industries, particularly in developing countries, to outsource logistics activities to 3PL providers effectively and to create a significant competitive advantage. Originality/value – The main contributions of this paper are twofold. First, this paper proposes an integrated grey DEMATEL method to consider interdependent relationships among the 3PL provider selection criteria. Second, this study is one of the first studies to consider 3PL provider selection in a developing country like Iran.

Prioritising the Factors for Analysing Service Quality of 3PL: AHP Approach

2017 ◽  
Vol 13 (1-2) ◽  
pp. 34-42 ◽  
Author(s):  
Anchal Gupta ◽  
Rajesh K. Singh ◽  
P.K. Suri
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Third Party ◽  
Quality Of Services ◽  
Third Party Logistics ◽  
Analytical Hierarchical Process ◽  
Evaluation Of Parameters ◽  
Timely Delivery ◽  
Selection Of

Due to wide growth of digitalisation and globalisation, organisations need to serve customer demand with quality services, domestically as well as globally. Organisations always preferred to outsource their supply chain and logistics operations to third-party logistics (3PL) for the purpose of timely delivery and better service quality. This article aimed to find out the key parameters that affect the quality of services provided by 3PL to the organisations. Assets, processes and services are the three broader categories desired by organisations at the time of selection of best 3PL. The evaluation of parameters under these categories has been done by using Analytical Hierarchical Process (AHP) and the ranking of parameters may help the organisations to make the best decision regarding selection of best 3PL among all the available alternatives.

Holistic performance management of virtual teams in third-party logistics environments

2018 ◽  
Vol 24 (3/4) ◽  
pp. 186-202 ◽  
Author(s):  
Youness Eaidgah ◽  
Amir Abdekhodaee ◽  
Manoochehr Najmi ◽  
Alireza Arab Maki
Keyword(s):  
Performance Management ◽  
Virtual Teams ◽  
Integrated Approach ◽  
Third Party ◽  
Coherent System ◽  
Third Party Logistics ◽  
Skill Levels ◽  
Content Type ◽  
High Staff Turnover

Purpose The purpose of this paper is to investigate the use of an integrated approach for performance improvement of virtual teams (VTs) in third-party logistics (3PL) through the integration of performance management (PM), visual management (VM) and continuous improvement (CI) initiatives into one coherent system. The paper will also propose a methodological framework to establish such a system. The intended integrated system is called as integrated visual management (IVM) throughout this paper. Design/methodology/approach This research is based on a case study that took place in a 3PL context with 19 VTs of different sizes spread across Australia. Many major 3PL companies provide their services either internationally or nationwide and therefore use VTs on a regular basis. The selected company does the same. This case was picked as representative of the many complexities which VTs face in 3PL settings, e.g. geographical and temporal separations; different skill levels within the team and between different team bases; multi-teaming system; high staff turnover; recurring performance problems and firefighting approach to problem-solving; and highly demanding performance requirements from clients. Further, this case study, being of a newly established contract and team, enabled the observation of the team dynamic and complexities from the earliest stages. In addition, as the main author of the paper was part of the managerial layer of the studied VT, this provided it a unique opportunity to escape the usual bureaucracy and rather focus on the research. This study also includes a literature review on VTs along with PM, VM and CI, which comprises IVM. Findings It was found that an integrated approach to PM, VM and CI was effective in systematically improving the VT performance. The framework for implementing IVM was productive and enabled to successfully plan and deploy the improvement intentions. Even though the team was highly virtual and encompassed a range of situational challenges, including different skill levels, a multi-teaming system and a high staff turnover, nevertheless, through IVM, the results met and exceeded performance targets on a sustainable base. Inventory record accuracy, dispatch on time, delivery in full on time and dock to stock were improved by 45, 62, 22 and 25 per cent on average, respectively. Originality/value The originality of the paper comes from its methodological approach to performance improvement for VTs in 3PL contexts through integrating PM, VM and CI systems into one coherent system, IVM.

Optimal selection of third-party logistics service providers using quality function deployment and Taguchi loss function

2015 ◽  
Vol 22 (7) ◽  
pp. 1281-1300 ◽  
Author(s):  
Satyendra Kumar Sharma ◽  
Vinod Kumar
Keyword(s):  
Loss Function ◽  
Quality Function Deployment ◽  
Third Party ◽  
Third Party Logistics ◽  
Taguchi Loss Function ◽  
Quality Function ◽  
Content Type ◽  
Logistics Service ◽  
Proposed Model ◽  
Selection Of

Purpose – Selection of logistics service provider (LSP) (also known as Third-party logistics (3PL) is a critical decision, because logistics affects top and bottom line as well. Companies consider logistics as a cost driver and at the time of LSP selection decision, many important decision criteria’s are left out. 3PL selection is multi-criteria decision-making process. The purpose of this paper is to develop an integrated approach, combining quality function deployment (QFD), and Taguchi loss function (TLF) to select optimal 3PL. Design/methodology/approach – Multiple criteria are derived from the company requirements using house of quality. The 3PL service attributes are developed using QFD and the relative importance of the attributes are assessed. TLFs are used to measure performance of each 3PL on each decision variable. Composite weighted loss scores are used to rank 3PLs. Findings – QFD is a better tool which connects attributes used in a decision problem to decision maker’s requirements. In total, 15 criteria were used and TLF provides performance on these criteria. Practical implications – The proposed model provides a methodology to make informed decision related to 3PL selection. The proposed model may be converted into decision support system. Originality/value – Proposed approach in this paper is a novel approach that connects the 3PL selection problem to practice in terms of identifying criteria’s and provides a single numerical value in terms of Taghui loss.

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