Key selection criteria for third party logistics in the IC manufacturing industry

2013 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Mei-Hua Chen
Keyword(s):  
Selection Criteria ◽  
Manufacturing Industry ◽  
Third Party ◽  
Third Party Logistics ◽  
Ic Manufacturing

3PL selection criteria in integrated circuit manufacturing industry in Taiwan

2016 ◽  
Vol 21 (1) ◽  
pp. 103-124 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Tsai-Ti Chen ◽  
James T. Lin
Keyword(s):  
Integrated Circuit ◽  
Cost Reduction ◽  
Selection Criteria ◽  
Manufacturing Industry ◽  
Market Competition ◽  
Value Added ◽  
The Body ◽  
High Tech ◽  
Content Type ◽  
Ic Manufacturing

Purpose – The purpose of this study was to identify the key third-party logistics (3PL) selection criteria for the integrated circuit (IC) manufacturing industry in Taiwan. The IC manufacturing industry seeks global sourcing, and is facing increasing pressure due to fierce market competition. More than a cost reduction strategy, 3PL is a strategic tool for IC manufacturers to gain a competitive advantage in a global supply chain complex. Design/methodology/approach – The triangulation method that combines qualitative and quantitative approaches was used in the study. The qualitative approach of focus group discussions was adopted to establish the decision framework, and the quantitative approach of the analytic hierarchy process was used to explore the relative importance of the 3PL selection criteria. Finally, an in-depth proof-by-example interview was undertaken to provide an insightful interpretation of the research results. Findings – The research shows that performance is the most important criterion group, followed by cost, service, quality assurance, intangible and information technology. At the detailed sub-criteria level, document accuracy, problem-solving capability, continuous cost reduction, value-added services and associated cost control capability are the top five criteria. Research limitations/implications – This study focused on the IC manufacturing sector in Taiwan. Multi-country and multi-industry studies are recommended to help further validate and generalise the research findings. Originality/value – Due to its application of triangulation, this study is a pioneering work on the 3PL selection criteria in a high-tech manufacturing industry. Furthermore, the value of this research is that it enhances the body of knowledge of 3PL selection by identifying certain emerging selection criteria, it could serve as a guideline for IC manufacturers in planning logistics outsourcing actions and it could significantly contribute to the efforts of 3PL providers in evaluating whether they comply with customer needs and adhere to core competency development.

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.

scholarly journals Benchmarking criteria for evaluating third-party logistics providers in South Africa

2017 ◽  
Vol 11 ◽  
Author(s):  
Claudia Karrapan ◽  
Mndeni Sishange ◽  
Elana Swanepoel ◽  
Peter J. Kilbourn
Keyword(s):  
South Africa ◽  
Selection Criteria ◽  
Selection Process ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Ranking Criteria ◽  
The Relationship ◽  
Ranking Index ◽  
Selection Of

Background: In South Africa, deemed the ‘gateway to Africa’, there is limited evidence of the existence of a survey ranking third-party logistics providers (3PLs). This lack of comparative information of the major 3PLs based on key outsourcing and ranking criteria complicates the selection process for companies that intend to contract 3PLs.Objective: The purpose of this article was to determine the critical selection and ranking criteria for the creation of an index to evaluate 3PLs in South Africa for developing a 3PL benchmarking index.Method: Survey data were collected from 103 of the Top 500 Companies in Africa that use 3PLs and operate within the sectors that mostly outsource logistics services in South Africa. A factor analysis method was employed.Results: Three factors for 3PLs selection converged: service quality, information management and compliance, and collaboration. The top three ranked categories for 3PLs selection are cost and price structure, service delivery and the relationship with the 3PL provider. Most respondents (90%) confirmed a need for a 3PLs index in South Africa.Conclusion: The results help managers with the strategic selection of 3PLs as these critical logistics outsourcing selection criteria can be used to evaluate and rank 3PLs prior to contracting. Based on the selection criteria for logistics outsourcing identified and ranked in this article, a ranking index for 3PLs in South Africa can be developed.

Benefits, Risks, Selection Criteria and Success Factors for Third-Party Logistics Services

2008 ◽  
Vol 10 (4) ◽  
pp. 380-392 ◽  
Author(s):  
Konstantinos Selviaridis ◽  
Martin Spring ◽  
Vassilios Profillidis ◽  
George Botzoris
Keyword(s):  
Selection Criteria ◽  
Success Factors ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Services

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 IDENTIFICATION OF CRITERIA FOR THIRD PARTY LOGISTICS SUPPLIERS (3PL) IN SUPPLY CHAIN MANAGEMENT (SCM) IN INDIAN MANUFACTURING INDUSTRIES

2021 ◽  
Vol 13 (2) ◽  
Author(s):  
Swapnil Sawant ◽  
Avinash Sarode
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Manufacturing Industry ◽  
Service Providers ◽  
Selection Process ◽  
Manufacturing Industries ◽  
Third Party ◽  
Third Party Logistics ◽  
Chain Management ◽  
Selection Of

The Indian manufacturing industry is growing rapidly, and supply chain management (SCM) plays the most important role in the industry. In SCM, customer satisfaction in terms of quantity, quality and on time delivery is the most important critical factor. To satisfy this requirement, the best third-party logistics (3PL) service provider is required.  Therefore, the selection of the best third-party logistics provider is one of the basic requirements in SCM. Logistics services are the backbone of an economy, providing the efficient, cost effective flow of goods and services on which other commercial sectors depend. The logistics companies work as the outsourced or third-party service providers and support the organization's logistics functions. In this study, we identified some important criteria for 3PL implementation in SCM in Indian manufacturing industries.  With the help of this study, supply chain managers from small to medium sized manufacturing industries can simplify the selection process for 3PL vendors. This study will help in the selection of the best vendor from such a competitive group and provide justification for the selection. 

scholarly journals CHALLENGES OF IMPORT LOGISTICS OUTSOURCING BY MANUFACTURING FIRMS IN NAIROBI COUNTY

2017 ◽  
Vol 1 (1) ◽  
pp. 86-106
Author(s):  
Anne Wanjiru Njoroge ◽  
Mr. Onserio Nyamwange
Keyword(s):  
Manufacturing Industry ◽  
Total Population ◽  
Manufacturing Firms ◽  
Third Party ◽  
Sample Survey ◽  
Primary Data ◽  
Third Party Logistics ◽  
Manufacturing Companies ◽  
Logistics Outsourcing ◽  
Business Functions

Purpose: The purpose of this study was to investigate challenges of import logistics outsourcing by manufacturing firms in Nairobi CountyMethodology: The research design of this study was a sample survey of the importers in the manufacturing industry as per the Kenya Association of Manufacturers. The total population of the companies in the manufacturing industry in Nairobi was 455 manufacturing firms. Primary data was collected via self-administered questionnaires with both open ended and closed questions that were designed to elicit specific responses for qualitative and quantitative analysis respectively. The data was analyzed by use of descriptive statistics.Results: The results indicated that the important reasons of outsourcing were satisfactory in explaining the decision by manufacturing companies to outsource. The reasons of outsourcing are a key determinant in deciding to outsource import logistics. The extent of challenges the importers face when importing services also determined the decision to outsource in the firms.Unique contribution to theory, practice and policy: The study recommends that the manufacturing firms should put more focus on core business functions and ensure reduction of overhead costs. They should take advantage of external expertise and experience and put measures to improve internal capabilities and expertise. The firms should reduce the total overall costs and where third party logistics providers provide a better service contract them. They should also emphasize on improved customer focus put measures to enable them compete effectively in the market.

scholarly journals An Integrated Fuzzy Approach for Strategic Alliance Partner Selection in Third-Party Logistics

2012 ◽  
Vol 2012 ◽  
pp. 1-6 ◽  
Author(s):  
Burak Erkayman ◽  
Emin Gundogar ◽  
Aysegul Yılmaz
Keyword(s):  
Hierarchical Structure ◽  
Selection Criteria ◽  
Strategic Alliance ◽  
Multicriteria Decision Making ◽  
Third Party ◽  
Strategic Decision ◽  
Third Party Logistics ◽  
Alliance Partner ◽  
The Hierarchical Structure ◽  
Criteria Weights

Outsourcing some of the logistic activities is a useful strategy for companies in recent years. This makes it possible for firms to concentrate on their main issues and processes and presents facility to improve logistics performance, to reduce costs, and to improve quality. Therefore provider selection and evaluation in third-party logistics become important activities for companies. Making a strategic decision like this is significantly hard and crucial. In this study we proposed a fuzzy multicriteria decision making (MCDM) approach to effectively select the most appropriate provider. First we identify the provider selection criteria and build the hierarchical structure of decision model. After building the hierarchical structure we determined the selection criteria weights by using fuzzy analytical hierarchy process (AHP) technique. Then we applied fuzzy technique for order preference by similarity to ideal solution (TOPSIS) to obtain final rankings for providers. And finally an illustrative example is also given to demonstrate the effectiveness of the proposed model.

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