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.

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.

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.

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.

An evaluation of input and output of expert systems for selection of material handling equipment

2014 ◽  
Vol 25 (7) ◽  
pp. 1049-1067 ◽  
Author(s):  
Mohsen M.D. Hassan
Keyword(s):  
Expert Systems ◽  
Design Methodology ◽  
Material Handling ◽  
Data Envelopment ◽  
Content Type ◽  
Input And Output ◽  
The Right ◽  
Practical Implications ◽  
Selection Of ◽  
The Ideal

Purpose – The purpose of this paper is to evaluate expert systems (ES) for selection of material handling (MH) equipment on their use of information and generation of equipment, and provide guidelines that can enhance developing them in the future. Design/methodology/approach – Data envelopment analysis (DEA) is used to evaluate efficiency of ES on their use of information and generation of equipment. Characteristics of benchmark ES are identified to serve as guidelines in developing future ES. Findings – Results of DEA indicate that most ES use a large amount of information that does not commensurate with the number and variety of equipment they generate. Research limitations/implications – The ideal MH equipment for a situation is not known whether it is selected by ES or other procedures. Therefore, this study focusses on efficiency of ES in using information to generate MH equipment without regard to whether ES produce the right equipment for a situation or not. Practical implications – Developers of future ES should consider the efficiency of an ES in using information and generation of equipment, in addition to considering its functions and methodologies. They should utilize means similar to those employed by benchmark methodologies and other ones that can be thought of to economize information and generate more number and variety of equipment, and thus render ES more useful to facility designers and manufacturing managers. Originality/value – The paper presents the first evaluation of ES for selection of MH equipment. The evaluation performed should enhance development of future ES in this field, and can be extended to ES in other application domains.

scholarly journals Characterizing third-party logistics setups in the context of construction

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Fredriksson ◽  
Mats Janné ◽  
Martin Rudberg
Keyword(s):  
Design Methodology ◽  
Case Analysis ◽  
Service Differentiation ◽  
Third Party ◽  
Third Party Logistics ◽  
Design Decisions ◽  
Content Type ◽  
Cross Case Analysis ◽  
Practical Implications

PurposeThe use of third-party logistics (TPL) setups in construction has increased but is still a new phenomenon. The purpose was to increase understanding of how structural and management dimensions are related in CLSs by describing how CTPL setups are used.Design/methodology/approachTen dimensions to describe and structure CLSs were identified from the literature and used to structure a cross-case analysis of 13 Swedish CLSs.FindingsThe main findings are: (1) there are three typical initiators of CLSs: municipalities, developers and contractors; (2) CLSs are drivers for service differentiation and modularization among TPL providers as construction specific services are required; (3) CLSs play a new role in construction by coordinating logistics activities between the construction project and the vicinity of the site.Research limitations/implicationsThe study is based on 13 cases in the Swedish construction context. Additional studies of CLSs in other countries are needed.Practical implicationsThe ten dimensions can be used as a guide in designing a CLS and in determining the order of design decisions. The identification and structuring of CTPL services also exemplify the variety of service offerings.Originality/valueThis is one of the first cross-case analyses of CLSs enabling the characterization of CTPL setups. This study identifies how different services included in the setup relate to the roles of SCM and logistics in construction.

Pricing of 3PL Services

2013 ◽  
pp. 376-387
Author(s):  
Papasotiriou Dimitris
Keyword(s):  
Integrated Approach ◽  
Third Party ◽  
Technical Knowledge ◽  
Third Party Logistics ◽  
The Third Party Logistics ◽  
The Third ◽  
Logistics Services ◽  
Logistics Market ◽  
Selection Of

The project of pricing logistics services in the Logistics-Services-Provider sector is extremely difficult due to the absence of adequate technical knowledge in the Logistics market. This knowledge is not taught in special and integrated approach. The Logistics market is in need of a sector responsible for recording all pricing methods as regards the provision of pricing services. This sector has to be fully functional, efficient, and rational. This chapter aims at the development of an integrated record for the identification and classification of the advantages – disadvantages and key criteria as regards the selection of pricing methods in the third party logistics (3PLs) market sector. The key finding of this chapter contribute to the identification and classification of pricing methods, possibly applied in future 3PL projects.

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