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.

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.

Development of IoT based data-driven agriculture supply chain performance measurement framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sanjeev Yadav ◽  
Dixit Garg ◽  
Sunil Luthra
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Asset Management ◽  
Business Processes ◽  
Fuzzy Topsis ◽  
Data Driven ◽  
Supply Chain Performance ◽  
Content Type ◽  
Measurement Framework ◽  
Level 2

PurposePerformance measurement (PM) of any supply chain is prerequisite for improving its competitiveness and sustainability. This paper develops a framework for supply chain performance measurement (SCPM) for agriculture supply chain (ASC) based on internet of things (IoT). Moreover, this article explains the role of IoT in data collection and communication (SC visibility) based on the supply chain operation reference (SCOR) model.Design/methodology/approachThis research identifies various key performance indicators (KPIs) and also their role in SCPM for improving its sustainability by using SCOR. Further, Shannon entropy is utilized for weighing the basic processes of SCPM and by using weights, fuzzy TOPSIS is applied for ranking of identified KPIs at metrics level 2 (deeper level).Findings“Flexibility” and “Responsiveness” have been reported as two most important KPIs in IoT based SCPM framework for ASC towards achieving sustainability.Research limitations/implicationsIn this research, metrics are explained only at SCOR level 2. But, this research will guide the managers and practitioners of various organizations to set their benchmark for comparing their performance at different levels of business processes. Further, this paper has managerial implications to develop an effective system for PM of IoT based data-driven ASC.Originality/valueBy using IoT based data driven system, this article fills the gap between SCPM by measuring different SC strategies in their performance measurable form of reliable, responsive and asset management etc.

Exploring and measure the performance of the Indian petroleum supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sourabh Kumar ◽  
Mukesh Kumar Barua
Keyword(s):  
Supply Chain ◽  
Technology Adoption ◽  
Performance Measurement ◽  
New Technology ◽  
Evaluation Framework ◽  
Supply Chain Performance ◽  
Performance Indices ◽  
Content Type ◽  
New Technology Adoption ◽  
Petroleum Companies

PurposeThis research identifies the supply chain performance indices and designs an evaluation framework to assess and compare the Indian petroleum supply chain performance. We presented a case study of three Indian petroleum companies. For this purpose, we identified fifteen performance criteria extracted from previous literature and expert inputs and classified them into four groups.Design/methodology/approachA fuzzy technique for order preference by similarity to the ideal solution (TOPSIS) method is employed for evaluating the performance of the Indian petroleum supply chain.FindingsThe design and evaluation framework suggests that the top three performance measurement criteria, the purity of the products, compliance with environmental laws, and new technology adoption. The result findings also indicate that company C contributes to a maximum satisfaction level of 77%. Simultaneously, companies A and B hold satisfaction levels of 72% and 67%.Practical implicationsThe managers should ensure that environmental standards, new technology adoption, and quality are significant concerns in the petroleum supply chain. The managers should follow national and international policies to preserve the environment and ensure safety in operational activities.Originality/valueThis paper makes two contributions in the domain of performance measurement of the petroleum supply chain. First, it identifies the prominent supply chain performance indices. Second, it proposes a model to assess and compare the performance of Indian petroleum companies.

Managing Collaborative Relationships in Third Party Logistics

2020 ◽  
pp. 1783-1809
Author(s):  
Vicky Ching Gu ◽  
Ray Qing Cao ◽  
Ken Black ◽  
Hansen Zeng
Keyword(s):  
Supply Chain ◽  
Relationship Quality ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Positive Impact ◽  
Mediating Effect ◽  
Third Party ◽  
Supply Chain Performance ◽  
Third Party Logistics ◽  
Collaborative Activities

Some supply chain management researchers have realized the potential of collaborative activities for enhancing supply chain performance while other researchers have explored the positive impact of relationship quality on supply chain performance. To date, however, no empirical research has integrated these two research streams. Drawing upon social exchange theory, the authors propose a holistic research framework to explore the relationships among collaborative activities, the inter-organizational relationship quality, and supply chain performance. Specifically, they examine the mediating effect of relationship quality on the association between collaborative activities and supply chain performance. The research model is then tested using survey data (n=219). The authors' results illustrate a positive impact of both collaborative activities and relationship quality on enhancing supply chain performance. Moreover, this paper also supports the hypothesis that relationship quality mediates the relationship between collaborative activities and supply chain performance in third party logistics.

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.

scholarly journals Performance management practices in humanitarian organisations

2020 ◽  
Vol 10 (2) ◽  
pp. 125-168
Author(s):  
Hella Abidi ◽  
Sander de Leeuw ◽  
Wout Dullaert
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Performance Management ◽  
Management Practices ◽  
Empirical Studies ◽  
Supply Chain Performance ◽  
Content Type ◽  
Humanitarian Supply Chains ◽  
Design And Implementation ◽  
Performance Measurement Systems

PurposeWe examine how design and implementation practices for supply chain performance management that have proven successful in commercial organisations apply to humanitarian organisations (HOs) to guide the process of designing and implementing performance management in humanitarian organisations.Design/methodology/approachWe identify from the literature ten successful practices regarding the design and implementation of supply chain performance management in commercial businesses. We apply these, using action research over a four-year period, at Médecins sans Frontières (MSF) Belgium and draw conclusions from this.FindingsWe find that tools and techniques, such as workshops and technical sheets, are essential in designing and implementing supply chain performance measurement projects at HOs. Furthermore, making a link to an IT project is crucial when implementing performance measurement systems at HOs. Overall, our case study shows that performance management practices used in business can be applied and are relevant for humanitarian supply chains.Originality/valuePrevious research has argued that there are few empirical studies in the domain of performance management at humanitarian organisations. To the best of our knowledge, this paper is the first to provide a longitudinal understanding of the design and implementation of supply chain performance measurement at HOs.

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.

scholarly journals Key characteristics for designing a supply chain performance measurement system

2019 ◽  
Vol 68 (2) ◽  
pp. 296-318 ◽  
Author(s):  
Sara Elgazzar ◽  
Nicoleta Tipi ◽  
Glynis Jones
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Conceptual Framework ◽  
Measurement System ◽  
Performance Measurement System ◽  
Supply Chain Performance ◽  
Content Type ◽  
Design Elements ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this paper is to conduct a review of the literature that gives insight into design elements for constructing a supply chain performance measurement (SCPM) system. Design/methodology/approach A systematic review of published research on SCPM systems and frameworks over the last two decades was conducted with the purpose of categorising key functions of SCPM systems by providing an insight into the design, functionality, implementation and practical implications of SCPM systems. Findings The review revealed a set of functions governing the SCPM system that have not been fully explored in previous research: the process focus, prioritisation, integration and causality functions of a SCPM system. A relationship between two or more functions can be created to include more functionality based on the needs of the company to create a comprehensive performance measurement system. Research limitations/implications The paper concludes with a conceptual framework to guide future research in the area of designing a SCPM system and define the main aspects that should be considered when developing a SCPM system. Practical implications The paper brings a new dimension to the SCPM research by identifying the main functions of SCPM systems that could benefit practitioners to set up a SCPM system relevant to its intended function. The paper presents multiple potential stages of merging different functions in one SCPM system. Based on the company’s needs and context, the functionality of the SCPM system can be designed at four levels creating ten possible scenarios when designing a company’s SCPM system. Originality/value The paper integrated the literature and findings of 269 research papers of the last two decades, upon which a conceptual framework was developed as a guide for constructing an effective SCPM system.

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