Decision Support Framework for Selection of 3PL Service Providers: Dominance-Based Approach in Combination with Grey Set Theory

2017 ◽  
Vol 16 (01) ◽  
pp. 25-57 ◽  
Author(s):  
Dilip Kumar Sen ◽  
Saurav Datta ◽  
Siba Sankar Mahapatra
Keyword(s):  
Decision Support ◽  
Set Theory ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Decision Support Framework ◽  
Ranking Order ◽  
Two Alternatives ◽  
Selection Of

Since past two decades, logistics outsourcing has got immense importance in the context of supply chain management. Logistics outsourcing or outsourcing of third party logistics (3PL) comprises involvement of outside firms to execute logistics activities of a firm efficiently. As deployment of 3PL providers has gained huge momentum in recent times, appropriate selection of 3PL providers seems indeed a necessity. The present work intends to propose a decision support framework for evaluation and selection of 3PL providers in pursuit of fulfilling various business needs. A decision support framework based on dominance measure concept integrated with grey set theory has been projected herein. Result obtained thereof has been compared to that of grey-TOPSIS. A case empirical research has also been reported. The proposed dominance-based decision support system in light of grey set theory has been conceptualized and is basically a simplified version of TODIM and PROMETHEE. It explores dominance between two alternatives with respect to a particular criterion, based on which a global dominance measure is computed to facilitate deriving ranking order of candidate 3PL providers. The proposed approach delineated in this research seems straightforward, easy to execute and can exclude complex and tedious computational steps of TODIM as well as PROMETHEE.

scholarly journals Evaluation and Selection of Nigerian Third-Party Logistics Service Providers Using Multi-Criteria Decision Models

2021 ◽  
Vol 12 (1) ◽  
pp. 135-146
Author(s):  
E.A. Ejem ◽  
C.M. Uka ◽  
D.N. Dike ◽  
C.C. Ikeogu ◽  
C.C. Igboanusi ◽  
...  
Keyword(s):  
Service Providers ◽  
Service Level ◽  
Decision Makers ◽  
Third Party ◽  
Decision Models ◽  
Third Party Logistics ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Selection Of

Abstract This paper is focused on solving the evaluation and selection of 3PL’s by applying multi-criteria decision-making methods. Nigerian Breweries, Nigerian Bottling Company (NBC), AG Leventis, Kobo logistics, and Flour Mills of Nigeria (FMN) were understudied. The main criteria on which evaluation is based were established: Cost, Service level, Financial Capability, Reputation and Long-term relationship. A combination of two quantitative models was adopted in the study. Relevant data were collected through an oral interview with managers and key decision-makers at the companies. SWARA was first applied to the collated data to determine the relative weights of the criteria. Afterwards, the TOPSIS was applied to the weights developed using SWARA and on the performance of the selected service providers. After the analysis, the best service provider was identified as supplier 2 while the worst was supplier 5.

Does the Outsourcing of Logistics Services Keep its Promise of Increased Efficiency?

2013 ◽  
pp. 162-184 ◽  
Author(s):  
Aliona Grigorenco ◽  
Philippos Papadopoulos ◽  
Konstantinos Rotsios
Keyword(s):  
Performance Measures ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Logistics Service Providers ◽  
Logistics Services ◽  
Business Functions ◽  
And Performance ◽  
Outsourcing Logistics

The aim of this chapter is to evaluate the efficiency of third party logistics (3PL) and the importance of outsourcing logistics services from the client’s perspective. The research focuses on current practices related to the extent of use, predictive value outsourcing and performance measures system of Colgate-Palmolive Company in Greece. The study examines the efficiency of the logistics service providers, and its impact on the overall client performance, evaluated through interviews with the 3PL Coordinator, the Logistics Manager, and the Manufacturing Director. The key findings of the work are that logistics outsourcing takes responsibility for non-core business functions, brings reductions of stocks and costs as well as order-to-delivery lead-time, accelerates capital turnover and capitalizes on synergies to achieve efficiency. Overall, its contribution is evaluated by the client as satisfactory and of medium significance, with room for improvements.

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.

The relationship between technology and logistics third‐party providers

2003 ◽  
Vol 33 (3) ◽  
pp. 236-253 ◽  
Author(s):  
Thierry Sauvage
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Time Compression ◽  
Logistics Service ◽  
The Third ◽  
Logistics Service Providers ◽  
The Relationship

Our work discusses the results of a survey among French logistics service providers. In a highly competitive context characterized by “time compression”, technological effort becomes a key variable and a means of differentiation between third‐party logistics providers. The success of logistics outsourcing relationships is entrenched in the third‐party's technological ability to improve the supply chain reactivity.

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. 

Appraisement and selection of third party logistics service providers in fuzzy environment

2013 ◽  
Vol 20 (4) ◽  
pp. 537-548 ◽  
Author(s):  
Saurav Datta ◽  
Chitrasen Samantra ◽  
Siba Sankar Mahapatra ◽  
Goutam Mandal ◽  
Gautam Majumdar
Keyword(s):  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Service ◽  
Fuzzy Environment ◽  
Logistics Service Providers ◽  
Selection Of
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