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.

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.

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.

A preliminary investigation into senior management skills: the context of third-party logistics (3PLs) providers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
James Midgley ◽  
Ozlem Bak
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Senior Management ◽  
Third Party ◽  
Third Party Logistics ◽  
Management Skills ◽  
Management Skill ◽  
Senior Managers ◽  
Content Type ◽  
The Uk

PurposeThe third-party logistics (3PL) provider has faced significant change since containerisation with the broadening scope of supply chains and technological developments. With these changes, the required supply chain skills discussions have covered mostly graduate skills or employees' skills with a limited discussion to what extent and whether senior management skills were changing. Hence, 3PL senior management skill requirements will be compiled based on existing studies and assessed to check whether these are still relevant and if so to what extent for today's 3PL senior managers.Design/methodology/approachA questionnaire has been devised based on 3PL senior management skills identified in the academic literature and sent out to senior managers via professional social networks of 3PL. Based on the previous literature, the senior managers selected had to fulfil the selection criteria of a minimum five years' managerial experience in a 3PL, and a minimum of ten years' experience in general, which limited the sample size to twenty-seven senior managers in the 3PL sector.FindingsThe findings indicated that 3PL senior managers’ skills highlighted an increasing dependence on and importance of relational and behavioural skills, particularly when compared with the more traditional functional and managerial skills. The study indicated that the 3PL senior managers highlighted an increasing dependence and importance upon relational and behavioural skills, particularly when compared with the more traditional functional skills.Research limitations/implicationsThe study has explored the senior management skills in 3PL in the UK, albeit the respondents possessing diverse backgrounds. Therefore, it would be beneficial to test whether these findings are exemplary across the wider 3PL sector, not only in the UK but also across Europe to see how corporate agenda for executive supply chain skills could be devised.Practical implicationsCorporate supply chain training and development staff can develop specific programs based on the 3PL senior management skill sets especially on relational and behavioural skills, which are needed for future managers as well as up-skill senior managers' skills which are deemed to be most important in the current 3PL market.Originality/valueThis paper contributes to the supply chain skills discussion and reports subject relevant challenges for today’s senior management in the 3PL industry. The findings have generated preliminary discussions on whether senior management skills are changing with the broadening scope of supply chains.

Supply chain agility in third-party logistics providers: its relationship with institutional and cultural geographical traits in a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benjamin R. Tukamuhabwa ◽  
Henry Mutebi ◽  
Rebecca Kwagala
Keyword(s):  
Supply Chain ◽  
Developing Country ◽  
Management Practice ◽  
Organisational Culture ◽  
Third Party ◽  
Third Party Logistics ◽  
Cross Sectional ◽  
Content Type ◽  
Supply Chain Agility ◽  
Internal Operations

PurposeThe purpose of this paper is to investigate the relationship between geographical traits consisting of institutional traits and cultural traits, and supply chain agility in third-party logistics providers.Design/methodology/approachA theoretical model was developed and assessed through a structured questionnaire survey using cross-sectional data from 170 third-party logistics providers registered in Uganda. To validate the suggested model, data were analysed using exploratory factor analysis, correlations and regressions.FindingsCorrelation results revealed that all institutional and cultural geographical traits in the model, i.e. infrastructural frameworks, regulatory frameworks, organisational culture and national culture are positively and significantly associated with supply chain agility. However, a further analysis using regression revealed that regulatory framework and organisational culture are the only significant predictors of supply chain agility and together, all the four traits account for 28.1% variance in supply chain agility.Research limitations/implicationsThis study applies the institutional theoretical framework to provide an empirical understanding of the role of institutional and cultural factors in supply chain management practice. Furthermore, it confirms and expands on the existing theories about supply chain agility.Practical implicationsThe findings provide firm ground for managerial decisions regarding emphasis on external factors in building firms' supply chain agility. Managers should scan the macro-environment and make conscious firm decisions regarding institutions and culture in certain geographical locations. The host countries should also be aware of their role in building firms' supply chain agility.Originality/valueDistinctive from the literature on antecedents of supply chain agility, which predominantly focuses on the firm and supply chain capabilities, this study utilises the paradigm of institutional fit to empirically show how managers in a developing country wishing to build supply chain agility should not only focus on their supply chains and internal operations, but go beyond and consider geographical traits when making firm location and/or operational decisions for certain geographical contexts in order to achieve fit.

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.

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.

scholarly journals A Compromised Decision-Making Approach to Third-Party Logistics Selection in Sustainable Supply Chain Using Fuzzy AHP and Fuzzy VIKOR Methods

Mathematics ◽  
2021 ◽  
Vol 9 (8) ◽  
pp. 886
Author(s):  
Chia-Nan Wang ◽  
Ngoc-Ai-Thy Nguyen ◽  
Thanh-Tuan Dang ◽  
Chen-Ming Lu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Sector ◽  
Selection Process ◽  
Fuzzy Ahp ◽  
Rapid Expansion ◽  
Third Party ◽  
Third Party Logistics ◽  
Sustainable Supply Chain ◽  
Weighting Method

With the effects of the COVID-19 pandemic, the e-commerce trend is driving faster, significantly impacting supply chains around the world. Thus, the importance of logistics and supply chain functions has been amplified in almost every business that ships physical goods. In Vietnam, the logistics service sector has seen rapid expansion. Since more and more businesses are seeking third-party logistics (3PL) providers to outsource the logistics functions, this article aims to offer decision-makers an integrated and consistent model for evaluating and selecting the most efficient 3PLs. To this end, the authors exploit a hybrid multi-criteria method which is fuzzy analytic hierarchy process (FAHP) and fuzzy vlsekriterijumska optimizacija i kompromisno resenje (FVIKOR) while examining the most influential and conflicting criteria regarding economic, service level, environmental, social, and risk aspects. Fuzzy information in the natural decision-making process is considered, linguistic variables are used to mitigate the uncertain levels in the criteria weights. First, FAHP (the weighting method) is adopted to evaluate and calculate each criterion’s relative significant fuzzy weight. FVIKOR (the compromised ranking method) is then used to rank the alternatives. The combination of FAHP and FVIKOR methods provides more accurate ranking results. As a result, reliability and delivery time, voice of customer, logistics cost, network management, and quality of service are the most impactful factors to the logistics outsourcing problem. Eventually, the optimized 3PLs were determined that fully meet the criteria of sustainable development. The developed integrated model offers the complete and robust 3PLs evaluation and selection process and can also be a powerful decision support tool for other industries.

Integration, supply chain resilience, and service performance in third-party logistics providers

2018 ◽  
Vol 29 (1) ◽  
pp. 5-21 ◽  
Author(s):  
Chiung-Lin Liu ◽  
Ming-Yu Lee
Keyword(s):  
Supply Chain ◽  
Service Performance ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Customer Integration ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Different Types ◽  
Internal Integration

Purpose Supply chain resilience (SCR) is essential to the success of firms. However, very few studies have focused on the relationships between different types of integration, SCR and service performance from the perspective of third-party logistics providers (3PLs). The purpose of this paper is to develop and assesses a conceptual model for these relationships. Design/methodology/approach A total of 161 3PLs in Taiwan were surveyed and their responses were analyzed using partial least squares structural equation modeling (PLS-SEM/PLS). Findings The responses of respondents demonstrated that, of the three types of integration (internal integration, customer integration and logistics collaborator integration) used by 3PLs, internal integration had the greatest effect on SCR. Customer integration was found to have three fully mediating effects on the relationships between internal integration and service performance, between logistics collaborator integration and SCR, and between logistics collaborator integration and service performance. Originality/value This study provides useful information on how different types of integration manifest in the SCR and service performance of 3PLs.

scholarly journals Skills needed in supply chain-human agency and social capital analysis in third party logistics

2018 ◽  
Vol 56 (1) ◽  
pp. 143-159 ◽  
Author(s):  
Rameshwar Dubey ◽  
Angappa Gunasekaran ◽  
Stephen J. Childe ◽  
Thanos Papadopoulos
Keyword(s):  
Social Capital ◽  
Supply Chain ◽  
Structural Equation ◽  
Design Method ◽  
Human Agency ◽  
Social Capital Theory ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Content Type

Purpose A shortage of skills is recognized as a major source of risk in supply chain networks. This study uses two independent organizational theories to explain how to build applicable skills for continuous availability of appropriate supply chain talents. The purpose of this paper is to propose an integrated framework that links human agency theory, social capital theory and supply chain skill. Design/methodology/approach This framework is analyzed in third party logistics (3PL) organizations by confirmatory factor analysis and tested using a survey. After pre-testing by six academics and six practitioners, and following the total design method, the data were collected from 183 3PL organizations in India. Data were checked to ensure no non-response bias. Research hypotheses were tested using WarpPLS-structural equation modeling. Findings A primary finding offers guidance to 3PL managers. Their driving role and mediating role of access to information and access to resources facilitate building supply chain skill. Leaders who invest in library, acquiring e-resources, offer financial support and create trust among employees are enablers of building supply chain skill. Originality/value This study classified 14 supply chain skills into three categories as: managerial skill, quantitative skill and supply chain core skill. The study could be extended to similar companies in other developing countries.

Analysing the critical success factors and the risks associated with third-party logistics in the food supply chain: a case of coffee industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saket Shanker ◽  
Hritika Sharma ◽  
Akhilesh Barve
Keyword(s):  
Supply Chain ◽  
Critical Success Factors ◽  
Success Factors ◽  
Fuzzy Topsis ◽  
Third Party ◽  
Future Research ◽  
Third Party Logistics ◽  
Content Type ◽  
Critical Success ◽  
The Impact

PurposeThe purpose of this study is to analyse various risks associated with third-party logistics (3PL) in the coffee supply chain and to present a framework that computes the influence of these risks on the critical success factors of the coffee supply chain.Design/methodology/approachThe risks have been identified through a comprehensive literature review and validation by industry experts. The paper utilises an interpretive structural modelling (ISM) methodology for developing a hierarchical relationship among the CSFs. Furthermore, fuzzy MICMAC analysis is carried out to categorise these CSFs based on their driving power and dependence value. The fuzzy technique for order preferences by the similarity of an ideal solution (fuzzy-TOPSIS) approach has been applied to prioritise the risks associated with 3PL based on their ability to influence the CSFs of the coffee SC. Furthermore, we performed a sensitivity analysis to analyse the stability of the results obtained in this study.FindingsThis study illustrates ten risks associated with 3PL and five CSFs in the coffee supply chain. The analysis revealed that coffee enterprises need to develop a balanced pricing strategy to ensure a sustainable competitive advantage, whereas the lack of direct customer communication is the most dominant 3PL risk affecting the CSFs.Practical implicationsThis research provides coffee enterprises with a generalised framework with set parameters that can be used to attain a successful coffee supply chain in any developing nation.Originality/valueThe study contributes to the literature by being the first kind of study, which has used fuzzy ISM-MICMAC to analyse the CSFs of the coffee supply chain and fuzzy-TOPSIS for analysing the impact of various risks associated with the 3PL in the coffee supply chain. Thus, this work can be considered a benchmark for future research and advancement in the coffee business field.

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