Strategic logistics outsourcing: upstream-downstream supply chain comparison

2017 ◽  
Vol 10 (3) ◽  
pp. 309-333 ◽  
Author(s):  
Saleh Fahed Alkhatib

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

2012 ◽  
Vol 7 (3) ◽  
pp. 287-303 ◽  
Author(s):  
Pravin Kumar ◽  
Rajesh K. Singh

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anuj Dixit ◽  
Srikanta Routroy ◽  
Sunil Kumar Dubey

PurposeThe purpose of this study is to develop a methodology for the identification, categorization and prioritization of operational government-supported healthcare supply chain barriers (GHSCBs).Design/methodology/approachThis study develops a theoretical background for identifying and segregating relevant GHSCBs and proposes a 5W2H (a Toyota production system) with fuzzy DEcision MAking Trial and Evaluation Laboratory (DEMATEL) embedded approach to quantify the causal–effect relationships among the identified operational GHSCBs.FindingsSeven GHSCBs (i.e. uncertainty of demand management, lack of continuous improvement and learning, lack of deadline management, lack of social audit, warehousing equipment unavailability, human resource shortage and inadequate top level monitoring) were identified as significant cause group where the government, top management and decision-makers of government-supported healthcare supply chain (GHSC) have to put efforts.Research limitations/implicationsThe results obtained are specific to the GHSC of Indian perspective, which could be extended to global context. However, the proposed approach can be a base and provide a platform to understand and analyze the interactions among GHSCBs.Practical implicationsThe proposed methodology will show the appropriate areas for allocating efforts and resources to mitigate the impact of GHSCBs for successful implementation of healthcare supply chain.Originality/valueAccording to best of the authors' knowledge, this is the first study of operational barrier for GHSC in India in specific. The use of 5W2H embedded fuzzy DEMATEL approach for the development and analysis of the theoretical framework of Indian GHSCBs is unique in barrier literature.


2016 ◽  
Vol 8 (3) ◽  
pp. 227-244 ◽  
Author(s):  
Khushbu Madan ◽  
Rajan Yadav

Purpose This paper aims to understand the factors that affect consumers’ adoption of mobile wallet as an alternative method of making payments to purchase goods and services. Design/methodology/approach A survey of over 210 mobile phone consumers was made. The study added two additional constructs – perceived regulatory support (PRS) and promotional benefits (PBs) – and proposed an integrated approach to understanding mobile wallet adoption. The hypothesized relationships were analysed via structural equation modelling. Findings The results indicated performance expectancy, social influence, facilitating conditions, perceived risk, perceived value, PRS, as well as PBs, to be significant factors in predicting behavioural intentions to adopt mobile wallet solutions. The impact of effort expectancy was found to be statistically insignificant. Research limitations/implications The small sample size and the possibility of including new variables such as personal innovativeness, which have not been addressed here, are some of the limitations of this study. Practical implications The findings of this paper would be useful for mobile wallet service providers, mobile app writers and institutions involved in the facilitation and regulation of such services to develop suitable strategic frameworks to encourage the adoption of mobile wallets. Originality/value The study is the first of its kind in India and has added a new dimension in the assessment of technology adoption by proposing two new variables.


2016 ◽  
Vol 11 (2) ◽  
pp. 660-693 ◽  
Author(s):  
Atanu Chaudhuri ◽  
Samir K. Srivastava ◽  
Rajiv K. Srivastava ◽  
Zeenat Parveen

Purpose The purpose of this paper is to identify various risk drivers which affect a food processing supply chain and to create a map of how those risk drivers propagate risks through the supply chain and impact important performance measures. Design/methodology/approach This study involves experts from food processing companies to elucidate the contextual relationships among the risk drivers and between risk drivers and performance measures. This is used to quantify the relationships and to determine the indirect and overall relationships applying Fuzzy Interpretive Structural Modeling. Findings Three categories of risk drivers which Indian food processing companies need to pay maximum attention to minimize risks are identified. These are supplier dependency and contracting, supplier variability, visibility and traceability and manufacturing disruptions. Analysis shows that collaborating with suppliers and logistics service providers, developing mutually beneficial contracts with them while ensuring that adequate technology investments are made can significantly mitigate risks and consequently improve margins and lead to revenue growth. Research limitations/implications This study has been carried out with experts from large food processing companies in India, and hence, the results cannot be generalized across other types of food processing companies. Practical implications The proposed methodology can help understand the interrelationships between supply chain risks and between those risks and performance measures. Thus, it can help a food processing company to create business cases for specific supply chain risk mitigation projects. Originality/value This study is one of the earliest to create a comprehensive risk propagation map for food processing companies which helps in quantifying the impact the risk drivers have on each other and on performance measures.


2020 ◽  
Vol 2 (2) ◽  
pp. 99-111
Author(s):  
Macide Berna Çağlar Kalkan ◽  
Kenan Aydın

PurposeThe aim of this study is to examine the role and capabilities of fourth party logistics (4PL) in the supply chain agility and firm performance. In addition to this, the relationship between supply chain agility and firm performance is also examined. This study aims to fulfill the gap in the literature about the studies on the relationship between 4PL capability dimensions, supply chain agility and business performance.Design/methodology/approachThe study uses survey data from 58 senior executives and managers in the logistics and supply chain functions from 4PL service providers' customer firms in Turkey. The results are structural equation modeling using SmartPLS software. Snowball sampling method was used to collect survey data.FindingsThis study shows that integrator and supply chain infomediary are appropriate practices for mediating the impact of agile supply chain strategies, on firm performance. For supply chain practitioners, results indicate that firms benefit greatly if they consider the outsourcing, such as a 4PL partnership, in conjunction with their supply chain strategy.Research limitations/implicationsTime, cost and the presence of businesses located in different cities across Turkey in the sample of study and the existence of the tendency of enterprises not to participate in the research can be stated as the limitations of this study.Originality/valueIn the literature, studies on 4PL have been conducted in different fields which can be categorized as follows: 4PL solution development, reasons that facilitate and prevent the design and implementation of 4PL, scope of 4PL service delivery and profit and risk sharing from the structure of 4PL networks. Briefly, the studies focus on conceptualizing and differentiating of 4PL from 3PL before reaching a common definition. Motivation of this study is to fulfill the gap of literature about supply chain agility, firm performance relationship and mediation role of 4PL skill dimensions.


2020 ◽  
Vol 41 (1) ◽  
pp. 55-62
Author(s):  
Atanu Chaudhuri ◽  
Hussein Naseraldin ◽  
Peder Veng Søberg ◽  
Ehud Kroll ◽  
Michael Librus

PurposeThe purpose of this research is to (1) analyse the effect of customised on-demand 3DP on surgical flow time, its variability and clinical outcomes (2) provide a framework for hospitals to decide whether to invest in 3DP or to outsource.Design/methodology/approachThe research design included interviews, workshops and field visits. Design science approach was used to analyse the impact of the 3D printing (3DP) interventions on specific outcomes and to develop frameworks for hospitals to invest in 3DP, which were validated through further interviews with stakeholders.FindingsEvidence from this research shows that deploying customised on-demand 3DP can reduce surgical flow time and its variability while improving clinical outcomes. Such outcomes are obtained due to rapid development of the anatomical model and surgical guides along with precise cutting during surgery.Research limitations/implicationsWe outline multiple opportunities for research on supply chain design and performance assessment for surgical 3DP. Further empirical research is needed to validate the results.Practical implicationsThe decision to implement 3DP in hospitals or to engage service providers will require careful analysis of complexity, demand, lead-time criticality and a hospital's own objectives. Hospitals can follow different paths in adopting 3DP for surgeries depending on their context.Originality/valueThe operations and supply chain management community has researched on-demand distributed manufacturing for multiple industries. To the best of our knowledge, this is the first paper on customised on-demand 3DP for surgeries.


2016 ◽  
Vol 27 (1) ◽  
pp. 122-141 ◽  
Author(s):  
Alexander König ◽  
Stefan Spinler

Purpose – From a synthesis of literature, the purpose of this paper is to present a conceptual risk management framework, showing the effect of logistics outsourcing on the supply chain vulnerability (SCV) of shippers. The framework is designed to assist practitioners and academics in better understanding the key research, management as well as operational aspects involved. Design/methodology/approach – A literature review is conducted and based on these findings a conceptual framework developed. Findings – Logistics outsourcing is increasingly used by shippers, but the specific aspect of supply chain risk management (SCRM) and SCV in this context is rarely covered in research and implementation in practice is limited. Logistics outsourcing can have an ambiguous effect on the SCV of shippers and is influenced by other internal and external factors. Research limitations/implications – Literature directly dealing with logistics outsourcing and SCV/SCRM is rare and thus the framework is built on insights, compiled from the distinct research areas. Further research should be performed on this nascent topic. Practical implications – Shippers may use the framework to revise their risk management strategy and actively use logistics outsourcing to decrease SCV. Logistics service providers can tailor their services specifically toward clients and thus both can be better prepared for future supply chain disruptions. Originality/value – This paper looks specifically at SCV and SRCM of shippers with regards to logistics outsourcing.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samsul Islam ◽  
Floris Goerlandt ◽  
Mohammad Jasim Uddin ◽  
Yangyan Shi ◽  
Noorul Shaiful Fitri Abdul Rahman

PurposeThis study aims to improve understanding of how coastal maritime transport system of Vancouver Island would be disrupted in disaster events, and the strategies could be used to address such risks. Any transport disruption at the maritime leg of the supply chain can affect the needs of vulnerable residents and thus, the supply of many goods to coastal communities.Design/methodology/approachThis case study focuses on the disruption that can be expected to occur for ferries that serves coastal communities of Vancouver Island in Canada. A landslide scenario in the Fraser River (which connects coastal communities) is developed, and interviews and focus groups are used to gain understanding of the vulnerability and resilience of shipping.FindingsThe findings show that the maritime leg of the supply chain for the coastal communities of Vancouver Island is resilient to a landslide disruption of ferries. Besides, there would be no impact on the operability of tugs and barges. This study also offers suggestions for creating the conditions for increasing resilience of maritime supply chains to any such disruption.Research limitations/implicationsA research gap exists with respect to minimizing disruption in maritime supply chains, mainly in regard to lessening the impact on the vulnerable residents of coastal communities. This study contributes to filling this gap in the literature.Practical implicationsThe findings have significant implications for maritime service providers and for people working on disaster preparedness, emergency response and recovery.Originality/valueStudies which focus on alleviating the impact of disruptions in the maritime supply chains and the mitigation strategies for coastal communities are scarce in the literature.


2018 ◽  
Vol 29 (3) ◽  
pp. 1077-1097 ◽  
Author(s):  
Youngran Shin ◽  
Vinh Thai ◽  
Kum Fai Yuen

Purpose Anchoring on configuration theory, the purpose of this paper is to evaluate how supply chain relationship quality (SCRQ) differs across firm characteristics (FC) in the maritime logistics industry. In addition, it utilises transactional cost theory to establish the relationship between SCRQ and supply chain performance (SCP). Design/methodology/approach The data were obtained from a survey with 205 maritime logistics service players (shipping firms, shippers and freight forwarders) in Singapore. MANOVA and t-test analyses are used to examine the difference in SCRQ (i.e. trust and commitment) across FC which includes firm types and ownership types. Thereafter, structural equation modelling is employed to examine the influence of SCRQ on SCP. Findings The results indicate that the effects of trust and commitment on SCRQ vary significantly. It was also found that trust as an aspect of SCRQ has a significant impact on SCP, whereas commitment does not. Research limitations/implications As the field data were obtained from only one industry, future replication of the findings to other industries should consider industry-specific factors, if applicable. Practical implications It is suggested that maritime logistics service players should carefully manage trust and commitment to simultaneously enable SCP. By identifying the various aspects of FC that contribute to SCRQ, maritime logistics service providers could devise appropriate strategies for different customer segments more effectively. Originality/value This study expands current supply chain research by linking two dimensions of SCRQ in relationship marketing with SCP in supply chain management. It is also one of the first empirical attempts to explore the role of FC in the linkage between SCRQ and SCP in the maritime logistics industry.


Author(s):  
Hua Song ◽  
Kangkang Yu ◽  
Qiang Lu

Purpose Despite their crucial role in sustaining national economies, small and medium enterprises (SMEs) are beset by the constraint of financing at better conditions. The purpose of this paper is to compare supply chain finance (SCF) solutions provided by commercial banks and financial service providers (FSPs) that help SMEs access financing. Design/methodology/approach This study looks at multiple case studies using in-depth interviews with focal firms (lenders) to answer the research questions. In-depth interviews were conducted with three Chinese FSPs and three commercial banks providing working capital to the same SMEs. The unit of analysis is SCF solutions that have made the companies competitive in the industry. Findings The case studies show that the acquisition of transaction information and business credit in SCF can reduce ex ante information asymmetry. SCF utilizing receivable transfers, closed-loop business, relational embeddedness, and a combination of outcome control and behavioral control can also reduce ex post information asymmetry. For these reasons, compared with commercial bank-dominated SCF, SCF adopted by FSPs in the supply chain can better reduce information asymmetry. Originality/value This study contributes to the emerging literature exploring the impact of SCF on SMEs accessing financing. In particular, this study provides supply chain management and operations insights on SCF and their consequent influence. Previous research has focused on the direct dyadic relationship between lenders and borrowers while neglecting supply chain effects. Uniquely, this study explores the different ways commercial banks and FSPs implement SCF solutions.


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