Logistics service providers (LSPs) evaluation and selection: Literature review and framework development

Purpose – The purpose of this paper is to provide an insight to the outsourcing decision-making through investigating if the old evaluation/selection criteria and methods still fit with current business priorities or not and, therefore, to identify the appropriate criteria and methods to develop a new selection framework. Since the economic recession of 2008, logistics outsourcing decisions have become more prominent to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages. Design/methodology/approach – This is a focused literature review prepared after analyzing 56 articles related to the logistics service provider (LSP) evaluation and selection methods and criteria during 2008-2013. The academic articles are analyzed based on research focus/area, evaluation and selection methodology/methods and evaluation and selection criteria. Then reviewed result is compared with previous literature studies for the periods (1991-2008) to identify any possible shifts. Findings – The review reveals that: several problems in current LSPs literature have been identified; the reviewed papers can be categorized into seven groups, the usage and importance of evaluation and selection criteria fluctuate during different periods; 12 crucial criteria have been identified, increasing the importance of specific selection methods and the integrated models and fuzzy logic in logistics literature. Then, a comprehensive LSPs’ evaluation and selection framework has been developed. Originality/value – To the best of our knowledge, this is the first focused logistics outsourcing study that reviews the 2008-2013 period in detail, comparing results with previous literature studies, identifies current LSPs literature problems/gaps, new trends and shifts in the way that LSPs are evaluated and selected, identifies crucial selection criteria and proposes a new holistic LSPs evaluation and selection framework. In addition, it identifies important issues for future research. Keywords Supplier or partner selection, Evaluation and selection methods and criteria, Logistics outsourcing, Logistics service provider, LSP framewor

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

A bibliometric analysis of selection of third-party logistics providers

19 páginasPurpose – To carry out a bibliometric review of third-party logistics service (3PLS) provider selection and identify the current stream of the field. Design/methodology/approach – Begins by setting the keywords for the search query to properly set the limit and scope of the research. The input selected for the study are papers, conference papers. Key indicators like publication productivity, citation, conceptual mapping, and research front are presented and discussed. The tools used for gathering the output were Rstudio and VosViewer. Findings: 3PLS provider selection is a topic studied mainly by surveys, case studies, and mathematical models' application. The selection decision is a multicriteria decisionmaking process and is mainly guided by quantitative models. Future research: 3PLS provider selection should include additional financial performance analysis. Last-mile distribution or collaborative distribution (covid19 as the main driver) and selection models applied to ecommerce could be developed. Practical implications: Managers could adapt the available publications and their models to their industry. Scholars can apply the model to different industries to set more robustness to the current conceptual and theoretical framework.Maestría en Gerencia InternacionalMagíster en Gerencia Internaciona

A Review of the Criteria and Methods of Reverse Logistics Supplier Selection

This article presents a literature review on reverse logistics (RL) supplier selection in terms of criteria and methods. A systematic view of past work published between 2008 and 2020 on Web of Science (WOS) databases is provided by reviewing, categorizing, and analyzing relevant papers. Based on the analyses of 41 articles, we propose a three-stage typology of decision-making frameworks to understanding RL supplier selection, including (a) establishment of the selection criteria; (b) calculation of the relative weights and ranking of the selection criteria; (c) ranking of alternatives (suppliers). The main discoveries of this review are as follows. (1) Attention to the field of RL supplier selection is increasing, as evidenced by the increasing number of papers in the field. With the adaption of circular economy legislation and the need resource and business resilience, it is expected that RL and RL supplier selection will be a hot topic in the near future. (2) A large number of papers take “sustainability” as the theoretical approach to carry out research and use it as the basis for determining the criteria. (3) Multi-criteria decision making (MCDM) methods have been widely used in RL supplier selection and have been constantly innovated. (4) Artificial intelligence methods are also gradually being applied. Finally, gaps in the literature are identified to provide directions for future research. (5) Value-added service is underrepresented in the current study and needs further attention

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

A NEW LOGARITHM METHODOLOGY OF ADDITIVE WEIGHTS (LMAW) FOR MULTI-CRITERIA DECISION-MAKING: APPLICATION IN LOGISTICS

Logistics management has been playing a significant role in ensuring competitive growth of industries and nations. This study proposes a new Multi-Criteria Decision-making (MCDM) framework for evaluating operational efficiency of logistics service provider (LSP). We present a case study of comparative analysis of six leading LSPs in India using our proposed framework. We consider three operational metrics such as annual overhead expense (OE), annual fuel consumption (FC) and cost of delay (CoD, two qualitative indicators such as innovativeness (IN) which basically indicates process innovation and average customer rating (CR)and one outcome variable such as turnover (TO) as the criteria for comparative analysis. The result shows that the final ranking is a combined effect of all criteria. However, it is evident that IN largely influences the ranking. We carry out a comparative analysis of the results obtained from our proposed method with that derived by using existing established frameworks. We find that our method provides consistent results; it is more stable and does not suffer from rank reversal problem

Reverse logistics service development of independent non-profit organization for reuse of computers: case - The Helsinki Metropolitan Area Reuse Centre Ltd.

Motivation for this thesis comes from the need to move towards circular economy, and the possibilities of better reuse of computers for the sake of the environment. Additionally, there is a clear lack of research concerning independent non-profit organizations in the reverse logistics arena. The aim of the research is to fill that gap and to examine the opportunities in computer reuse. The research questions were formulated to find answers to the surfaced questions: What are the drivers for engagement in reverse logistics? What different kinds of service models are there in the reverse logistics field? How reverse logistics systems are implemented? The methods used in this study are a literature review and a single case study method. First, a systematic literature review was conducted with the related search terms of product recovery management, reverse logistics, and third party logistics. Single case study method was used to gain insight into the drivers for engagement, type of business model and implementation of reverse logistics of a non-profit company. The reverse logistics operations development project for the case company, The Helsinki Metropolitan Area Reuse Centre Ltd., allowed to answer the questions presented and to build relevant knowledge about the subject. As a result, it was found that general characteristics of reverse logistics and its implementation apply no matter the circumstances. However, the case study shows that the drivers for engagement in reverse logistics of non-profit organization can differ greatly from traditional profit-seeking companies. For a non-profit company, the environmental and social aspects of the triple bottom line weigh more, and the financial incentives weigh less. Further, the independent role of a reverse logistics operator in the market imposes needs for active communication to reach consumers and collaborative companies alike, for the ends of acquiring more input products

A Decision Support System for Performance Evaluation: A Combined D-ANP & ANN Approach

In this study, a novel performance evaluation approach combining DEMATEL, ANP and ANN methods is proposed. The influenced weights for the evaluation criteria are calculated by D-ANP and following this the final ranking of the stores is obtained by utilizing historical data in artificial neural networks

Third-party logistics (3Pls) provider selection via Fuzzy AHP and EDAS integrated model

In the global competitive environment, companies not only improve the quality of service and increase the efficiency, they also decrease the cost by means of third-party logistics (3PLs). 3PLs, therefore, is an important strategy for companies desiring to gain a competitive advantage and 3PLs provider selection plays a critical role for the success of outsourcing. Nevertheless, the level of uncer­tainty in the selection process is relatively high and need to be carefully considered. Hence, in order to select a proper 3PLs provider, integration of the Fuzzy AHP and Evaluation based on Distance from Average Solution (EDAS) has offered a novel integrated model, in which Fuzzy AHP is used for calculating priority weights of each criteria and EDAS is employed to achieve the final ranking of 3PLs providers. Besides, in order to demonstrate the applicability of the proposed model, it is validated by a case study. Cost together with quality, and professionalism are found to be the most important factors for 3PLs provider selection. Consequently, the advantage of this model is that it is simple to apprehend and easy to apply. The use of the proposed model leads to the selection of suitable alternative successfully in other selection problems. First published online: 23 Apr 201