scholarly journals The Role of Sustainability for Enhancing Third-Party Logistics Management Performance

2019 ◽  
Vol 9 (1) ◽  
pp. 14
Author(s):  
Ahmed Ali ◽  
Kaushal Chauhan ◽  
Mahmoud Barakat ◽  
Ahmed Eid

Technological development and globalization made the supply chain more complex in today’s business environment. In competitive market conditions, shippers tend to outsource most of their logistical activities to Third-Party Logistics (3PL) service providers. These activities have drawn attention of decision makers regarding sustainability concerns. This study examines sustainability initiatives which have been implemented particularly for the 3PL functions namely; transportation, warehousing and packaging services and their influence on performances. Empirical data have been collected through a worldwide online survey which has been sent to industrial experts working in logistics and supply chain management fields. The results were analyzed through the Structural Equation Modelling (SEM). The analysis indicated that, the 3PL functions significantly affect environmental, economic, social and operational performance, except packaging which had no significant impact on economic, operational and social performance, in addition to transportation which had no significant impact on social performance. Regarding the performance outcome and its impact on logistics efficiency, logistics effectiveness and competitiveness, empirical results indicated that there is no significant impact between the variables except, social performance which had a significant impact on logistics efficiency and competitiveness, operational performance which had a significant impact on logistics efficiency, logistics effectiveness and competitiveness. The proposed model and hypotheses developed give further understanding regarding 3PL industries thereby help decision makers in solving the problems related to 3PL sustainability initiatives.

Author(s):  
R. Rajesh ◽  
S. Pugazhendhi ◽  
K. Ganesh

Third party logistics (3PL) service providers play a growing responsibility in the management of supply chain. The global and competitive business environment of 3PLs has recognized the significance of a speedy and proficient service towards the customers in the past few decades. Particularly in warehousing, distribution, and transportation services, a number of customers anticipate 3PLs to improve lead times, fill rates, inventory levels, etc. Therefore, the 3PLs are under demands to convene a range of service necessities of customers in an active and uncertain business environment. As a consequence of the dynamic environment in which supply chain must operate, 3PLs should sustain an effective distribution system of high performance and must make a sequence of inter-related decisions over time for their distribution networks. Warehouses play an important role in sustaining the continual flow of goods and materials between the manufacturer and customers. The performance of the 3PL supply chain network can be effortlessly enhanced by a balanced allocation of customers to warehouses. In this paper, the authors develop a genetic algorithm and a particle-swarm-optimisation algorithm for solving the balanced allocation problem and the results are encouraging.


2021 ◽  
Vol 12 (1) ◽  
pp. 135-146
Author(s):  
E.A. Ejem ◽  
C.M. Uka ◽  
D.N. Dike ◽  
C.C. Ikeogu ◽  
C.C. Igboanusi ◽  
...  

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.


Author(s):  
Pier Paolo Carrus ◽  
Roberta Pinna

Logistics Service Providers (3PL) have become important players in supply chain management. In a highly competitive context characterized by “time compression”, a successful strategy depends increasingly on the performance of Logistics Service Providers as they play a key integrative role linking different supply chain elements more effectively. However, the role of the information technology capability of these 3PL has not drawn much attention. The research question is: can IT be viewed as a fundamental supply chain management coordination mechanism? If so, does IT capability of third party logistics providers to improve performance in the supply chain and become a bigger factor in a strategic buyer-3PL relationship? By drawing on earlier research on the supply chain management coordination mechanism, the IT capability of third party logistics providers, a case study is conducted.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sharfuddin Ahmed Khan ◽  
Shahed Alkhatib ◽  
Zaina Ammar ◽  
Md. Abdul Moktadir ◽  
Anil Kumar

PurposeOutsourcings always affect crucial supply chain functions concerning flexibility and cost. During the decision to outsource and consider third-party logistics service provider selection, decision-makers need to pay more attention to certain critical outsourcing factors such as coordination, integration and cooperation as these key factors are essential to improve overall supply chain performance. The main purpose of this work is to identify the inter-relations among outsourcing decision factors to highlight the most important and influential factors that should be considered and carefully thought through when making outsourcing sustainable decisions.Design/methodology/approachA two-phased methodology has been used in this study. In the first phase, outsourcing decision factors are identified from existing literature and validated by decision-makers from industry and academia. To understand the influential strength and build a sustainable model, the decision-making trial and evaluation laboratory method is used. A courier company in the UAE is considered for implementation.FindingsAll identified and validated factors are segregated into two categories (cause and effect). The result shows that the most influential factors are developing strategic alliances, uncertainty and risk mitigation and deficiency of internal resources for a service.Practical implicationsThere are several insights for industry managers and practitioners. The results of the study may help practitioners and logistics managers to make the logistics service sustainable and more efficient for businesses.Originality/valueThis study focusses on a courier company to understand the interdependencies among outsourcing decision factors; this is unique in this field of literature.


2017 ◽  
Vol 12 (2) ◽  
pp. 277-296 ◽  
Author(s):  
Avci Salih Börteçine ◽  
İyigün İsmail

AbstractThis study focuses on the impact of corporate governance, supply chain network governance and competencies such as sales and logistics competence on buyers’ intention to relationship continuity. A total number of 258 questionnaires were distributed to Turkish manufacturing firms, selected using cross-sectional sampling method from the Istanbul and Edirne Chamber of Commerce and Industry in Turkey. The data of survey was analysed using PLS-SEM model with WARP PLS 5.0 software. Our findings indicate that corporate governance and supply chain network governance seem to have a positive effect on sales competence and logistics competence, and together, they influence buyers’ intention to relationship continuity. In this respect, the outcomes of this study may provide valuable insights for the third-party logistics (3PL) literature in terms of buyers’ intention to relationship continuity.


2018 ◽  
Vol 25 (1) ◽  
pp. 76-97 ◽  
Author(s):  
Rakesh Raut ◽  
Manoj Kharat ◽  
Sheetal Kamble ◽  
Chandra Shekhar Kumar

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.


Author(s):  
Thierry Sauvage

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.


Author(s):  
Swapnil Sawant ◽  
Avinash Sarode

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. 


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