Identification of Environmental Criteria for Selecting a Logistics Service Provider: A Step Forward towards Green Supply Chain Management

Green environmental performance increases the competitiveness of the supply chain. However, the greening of the supply chain depends on the manufacturer who drives the green initiative, as well as on all the members of the supply chain who take part in the process. The manufacturer’s attention has been largely focused on the environmental performance of the supplier and retailer, whereas logistics service providers have been somehow neglected. It is, in fact, the case is that logistics service providers have begun to play a critical role in supply chain management and could therefore significantly improve environmental sustainability. They have already undertaken a green initiative that unfortunately has rarely, if at all, been required by the manufacturer. The lack of requirements for logistics providers hinders the progress of a green initiative. To take a step forward towards green supply chain management, this chapter aims to introduce all the necessary criteria for the selection of a logistics service provider (LP), with an emphasis on environmental criteria. The environmental selection criteria, with all related subcriteria, were achieved on the basis of a systematic literature review. It has been found that buyers of logistics services still strive to minimize costs, expect quality logistics services, a well-positioned LP, all the while overlooking environmental issues. The most frequently applied environmental selection criteria are value-added reverse logistics services, followed by environmental expenditures, pollutants released, energy consumption, clean materials and energy use. The findings presented here are useful particularly for researchers, as issues regarding sustainable LP selection and its limitations are highlighted, related to selection criteria identification. These findings may be of less use to managers. However, future phases of this study, richer for the evaluation of logistics experts, will be much more applicable to buyers and providers of logistics services

What Turkey expects from logistics outsourcing ?

Copyright @ 2011 Yasar UniversityThe economies of the world have become increasingly interdependent, and organizations have come under tremendous pressure to maximize productivity and profitability. Creating value through outsourcing has emerged as a popular competitive strategy for firms of all sizes in all types of industries. The aim of this research is to investigate the use of third party logistics in Turkish companies from the users’ perspective to identify the types of logistics services outsourced, problems encountered in outsourcing these services, logistics costs, decision makers in outsourcing logistics activities, and information sources used in the decision-making process. A structured survey was selected as the tool for data collection. The field study involved face-to-face interviews with 204 companies out of top 500 companies ranked in terms of turnover that are registered with industrial associations and chambers of commerce in Turkey. Moreover, a decision support system based on Bayesian Causal Map is proposed for 3PLs in order to assist them in their service proposals for different sectors. This study is a first attempt to reveal and compare the outsourcing perception of the companies in different sectors, to expose the firms’ underlying motives as well as the respective importance of these motives for outsourcing logistics activities in Turkey. The use of Bayesian Causal Map based on the survey results provides an important guide to the 3PL providers to pick a suitable strategy and to prioritize their operational activities in different sectors in such a way to achieve a competitive advantage

Rationale for utilizing 3PL in supply chain management: A shippers' economic perspective

AbstractIn this paper we first propose a conceptual framework for evaluating 3PL (third-party logistics) utilization in SCM (supply chain management), in which it is assumed that shippers may enjoy advantages derived from four contributory sources of 3PL specialization: scale, know-how, searching ability, and IT skills. It is also supposed that shippers may particularly benefit from 3PL when facing uncertain business environments. We also apply principal–agent relationships to shippers and 3PL providers. Further, we see enhancing “agency efficiency” as important to obtaining the benefits of 3PL utilization. We also look at the role of 3PL provider selection, the “hold-up” problem under incomplete contracts, and asset ownership. After that we briefly discuss the utilization of 3PL and environmental concerns. These are the main points that we consider related to 3PL utilization. The main contribution of this study is to identify discussion points from models and theories, such as contract theory, that relate to the utilization of 3PL in SCM

Leveraging Offshore IT Outsourcing by SMEs through Online Marketplaces

Following their larger counterparts, an increasing number of small firms outsource their IT tasks to lower cost offshore destinations. For small firms, however, offshore outsourcing is a difficult undertaking as it involves high transaction costs. Online marketplaces for IT services, which have recently become available to small firms, make offshore IT outsourcing more accessible and manageable, although differences in the marketplace design result in varying outcomes across the marketplaces. This has consequences for SME’s decision as to which online marketplace to use, because different markets may have different types of benefits and costs. This paper sets to analyze some of the similarities and differences between online marketplaces for IT services and their effects for small firms. First, we analyze if and how online marketplaces reduce small firms’ transaction costs in offshore IT outsourcing. Second, we examine the effects of market entry barriers on outcomes of online marketplaces and their implications for small firms. The results indicate that online marketplaces for IT services do reduce transaction costs for small firms in offshore outsourcing across ten specific market processes. More surprising, however, is the finding that the lower market entry barriers for suppliers result in lower prices for buyers without compromising other aspects of market performance.Offshore IT Outsourcing;Online Market;Process-Stakeholder Analysis;Reverse Auction

A Practitioners Perspective On The Role Of A Third-Party Logistics Provider

Most studies of logistics look at needs from the perspective of the hiring firm. This paper does that, but further examines the role of a third-party logistics provider by looking at services from the practitioner’s perspective

Moving forward in reverse : a review into strategic decision making in reverse logistics

Reverse Logistics, the process of managing the backward flows of materials from a point of use to a point of recovery or proper disposal, has gained increased industry acceptance as a strategy for both competitive advantage and sustainable development. This has stimulated a growing number of researchers to investigate Strategic management issues relating to the set up and control of effective and efficient Reverse Logistics systems. This paper systematically reviews the most important works in this field, with a focus on papers that concentrate on the strategic decision making process involved in the design and operation of a Reverse Logistics process with remanufacturing. The review found that: the majority of work is primarily focused on OEM specific issues; the sectors receiving the most attention are the ones under the greatest pressure from environmental legislation; and previous research findings from Rubio et al. (2009) and Fleischmann et al. (2000) are reaffirmed that the Reverse Logistics field is growing, but characterised by mainly quantitative, mathematical models. Future research efforts should be focused on the empirical investigation of the Reverse Logistics design process for all types of remanufacturers

Business integration between manufacturing and transport-logistics firms

Purpose - This paper analyses how manufacturers and transport-logistics service providers (TLSPs) work together and integrate their business processes. The information technologies used to support the integration, the processes currently integrated, and the expected future integration, are searched. Design/methodology/approach - Six in-depth case studies were conducted among leading companies in the electrical, electronics, mechanical, food processing, and transport-logistics industries. The data was collected using comprehensive semi-structured interviews. Findings - Most of the firms are coupled electronically through EDI. The current business integration practices are primarily restricted to some sub-processes in three key SC processes: Customer service management, order fulfillment and backwards logistics. In the future the manufacturers want a better integration with the TLSPs, but at the same time, manufacturers would like to have the freedom of breaking the relationship, if the party does not fulfill the requisites and expectations. The future developments associated to the "commoditization" of TLSPs’ services would reinforce this trend. Originality/value - This research has shed light on a relatively unexplored area related to the integration between manufacturers and transport-logistics firms. Our research has highlighted the complexity of the integration between the two echelons, and has helped to the identification of current areas of integration. This research has also contributed to understand how the integration occurs in real contexts, by uncovering with a high degree of detail, what manufactures do to integrate their business with the TLSPsSupply chain management; Business process integration; Information technologies (IT); Standardization; Manufacturers; Transport and Logistics Service Providers (TLSPs)

Management guidelines for third-party logistics

There is a significant amount of useful yet fragmented research in third-party logistics (3PL). This article seeks to review, summarize, and structure this 3PL research to provide a reference guide for managers interested in exploring, building, or improving logistics outsourcing opportunities. Topics covered include reasons to outsource, functions to outsource, 3PL provider evaluation, implementation and relationship success factors, contracts, and performance measures

Reverse logistics - a framework

In this paper we define and compare Reverse Logistics definitions. We start by giving an understanding framework of Reverse Logistics: the why-what-how. By this means, we put in context the driving forces for Reverse Logistics, a typology of return reasons, a classification of products, processes and actors. In addition we provide a decision framework for Reverse Logistics and we present it according to long, medium and short term decisions, i.e. strategic-tactic-operational decisions.Framework;Decision-making;Reverse logistics;Theory building

Third party logistics : an analysis of the feasibility and contexts of strategic relationships

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004."June 2004."Includes bibliographical references (leaves 67-68).An important topic in the Third Party Logistics (3PL) industry is the extent to which customers view 3PL services as pure-commodities to be re-bid. The trend towards commoditization has been one of the causes for current pricing pressures on the 3PLs. The 3PLs gearing towards "strategic partnerships" and the addition of Value-Added Services to their portfolio could decelerate the trend towards commoditization and could also otherwise differentiate them from their competitors. This study investigates the categories of relationships that 3PLs have and specifically the presence of strategic relationships in the 3PL industry. The study also examines the contexts in which they exist and highlights the factors that have contributed to the formation of the strategic relationships. The study concludes by proposing steps that 3PLs can take to better position themselves as candidates for strategic relationships.by Madhu Ranjan [and] Richard Tonui.M.Eng.in Logistic