A novel technique for evaluating and selecting logistics service providers based on the logistics resource view

The increasing importance of logistics outsourcing and availability of logistics services providers (LSPs) highlights the significance and complexity of the LSP evaluation and selection process. Most existing LSP evaluation and selection studies use historical performance data and assume independence among decision criteria. This paper proposes an integrated logistics outsourcing approach to evaluate and select LSPs based on their logistics resources and capabilities. This novel approach combines a fuzzy decision making trial, valuation laboratory (FDEMATEL) and fuzzy techniques to order preferences by similarity to ideal solution (FTOPS IS) methods. The new multi-criteria decision making (MCDM) model addresses the impact relationships between decision criteria and ranks LSP alternatives against weighted resources and capabilities. The effectiveness of this approach is demonstrated through a real case study and a two-phase sensitivity analysis confirms its robustness

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

Third-Party Logistics

Third-party logistics was propelled first in US; later on, European nations put it on to successfully deal with an organization’s coordination exercises, re-appropriating the capacity and purchasing the administrations. 3PL suppliers without their very own advantages are called lead coordination suppliers that have preferred the standpoint that they have particular industry ability combined with low overhead expenses, yet they bring down arranging power. Lead coordination suppliers may likewise be less bureaucratic with shorter basic leadership cycles because of the littler size of the organization, and the most critical contrast between a second gathering coordination supplier and an outsider coordination supplier is the way that a 3PL supplier is constantly incorporated in the client’s framework. The 2PL is not coordinated as compared to the 3PL as it is just a redistributed coordination supplier with no framework mix. A 2PL regularly just gives institutionalized administrations, while 3PLs frequently give benefits that are redone and particular to the necessities of their client. Coordination is evaluated as a significant use for organizations. Thus, in the present aggressive condition, there is a squeezing need to control coordination expenses, and execution estimation has turned out to be an effective apparatus in accomplishing business targets

Analysis of Decision Support Systems of Industrial Relevance: Application Potential of Fuzzy and Grey Set Theories

The present work articulates few case empirical studies on decision making in industrial context. Development of variety of Decision Support System (DSS) under uncertainty and vague information is attempted herein. The study emphases on five important decision making domains where effective decision making may surely enhance overall performance of the organization. The focused territories of this work are i) robot selection, ii) g-resilient supplier selection, iii) third party logistics (3PL) service provider selection, iv) assessment of supply chain’s g-resilient index and v) risk assessment in e-commerce exercises. Firstly, decision support systems in relation to robot selection are conceptualized through adaptation to fuzzy set theory in integration with TODIM and PROMETHEE approach, Grey set theory is also found useful in this regard; and is combined with TODIM approach to identify the best robot alternative. In this work, an attempt is also made to tackle subjective (qualitative) and objective (quantitative) evaluation information simultaneously, towards effective decision making. Supplier selection is a key strategic concern for the large-scale organizations. In view of this, a novel decision support framework is proposed to address g-resilient (green and resilient) supplier selection issues. Green capability of suppliers’ ensures the pollution free operation; while, resiliency deals with unexpected system disruptions. A comparative analysis of the results is also carried out by applying well-known decision making approaches like Fuzzy- TOPSIS and Fuzzy-VIKOR. In relation to 3PL service provider selection, this dissertation proposes a novel ‘Dominance- Based’ model in combination with grey set theory to deal with 3PL provider selection, considering linguistic preferences of the Decision-Makers (DMs). An empirical case study is articulated to demonstrate application potential of the proposed model. The results, obtained thereof, have been compared to that of grey-TOPSIS approach. Another part of this dissertation is to provide an integrated framework in order to assess gresilient (ecosilient) performance of the supply chain of a case automotive company. The overall g-resilient supply chain performance is determined by computing a unique ecosilient (g-resilient) index. The concepts of Fuzzy Performance Importance Index (FPII) along with Degree of Similarity (DOS) (obtained from fuzzy set theory) are applied to rank different gresilient criteria in accordance to their current status of performance. The study is further extended to analyze, and thereby, to mitigate various risk factors (risk sources) involved in e-commerce exercises. A total forty eight major e-commerce risks are recognized and evaluated in a decision making perspective by utilizing the knowledge acquired from the fuzzy set theory. Risk is evaluated as a product of two risk quantifying parameters viz. (i) Likelihood of occurrence and, (ii) Impact. Aforesaid two risk quantifying parameters are assessed in a subjective manner (linguistic human judgment), rather than exploring probabilistic approach of risk analysis. The ‘crisp risk extent’ corresponding to various risk factors are figured out through the proposed fuzzy risk analysis approach. The risk factor possessing high ‘crisp risk extent’ score is said be more critical for the current problem context (toward e-commerce success). Risks are now categorized into different levels of severity (adverse consequences) (i.e. negligible, minor, marginal, critical and catastrophic). Amongst forty eight risk sources, top five risk sources which are supposed to adversely affect the company’s e-commerce performance are recognized through such categorization. The overall risk extent is determined by aggregating individual risks (under ‘critical’ level of severity) using Fuzzy Inference System (FIS). Interpretive Structural Modeling (ISM) is then used to obtain structural relationship amongst aforementioned five risk sources. An appropriate action requirement plan is also suggested, to control and minimize risks associated with e-commerce exercises

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

A decision support model for identification and prioritization of key performance indicators in the logistics industry

YesPerformance measurement of logistics companies is based upon various performance indicators. Yet, in the logistics industry, there are several vaguenesses, such as deciding on key indicators and determining interrelationships between performance indicators. In order to resolve these vaguenesses, this paper first presents the stakeholder-informed Balanced Scorecard (BSC) model, by incorporating financial (e.g. cost) and non-financial (e.g. social media) performance indicators, with a comprehensive approach as a response to the major shortcomings of the generic BSC regarding the negligence of different stakeholders. Subsequently, since the indicators are not independent of each other, a robust multi-criteria decision making technique, the Analytic Network Process (ANP) method is implemented to analyze the interrelationships. The integration of these two techniques provides a novel way to evaluate logistics performance indicators from logisticians' perspective. This is a matter that has not been addressed in the logistics industry to date, and as such remains a gap that needs to be investigated. Therefore, the proposed model identifies key performance indicators as well as various stakeholders in the logistics industry, and analyzes the interrelationships among the indicators by using the ANP. Consequently, the results show that educated employee (15.61%) is the most important indicator for the competitiveness of logistics companies

Logistics service provider selection for disaster preparation: a socio-technical systems perspective

Since 1990s, the world has seen a lot of advances in providing humanitarian aid through sophisticated logistics operations. The current consensus seems to be that humanitarian relief organizations (HROs) can improve their relief operations by collaborating with logistics service providers (CLSPs) in the commercial sector. The question remains: how can HROs select the most appropriate CLSP for disaster preparation? Despite its practical significance, no explicit effort has been done to identify the criteria/factors in prioritising and selecting a CLSP for disaster relief. The present study aims to address this gap by consolidating the list of criteria from a socio-technical systems (STS) perspective. Then, to handle the interdependence among the criteria derived from the STS, we develop a hybrid multi-criteria decision making model for CLSP selection in the disaster preparedness stage. The proposed model is then evaluated by a real-life case study, providing insights into the decision-makers in both HROs and CLSPs

A Framework for Detecting the Proper Multi-Criteria Decision-Making Method Taking into Account the Characteristics of Third-Party Logistics, the Requirements of Managers, and the Type of Input Data

The aim of the paper is to propose a framework for improving the process of choosing an appropriate multi-criteria decision-making (MCDM) method in the selection of a third-party logistics provider (3PLP). A systematic combining process was used, along with two literature reviews, one empirical survey and a case study. A four-step framework was proposed, starting with identifying common criteria that are harmonised to the 3PLP selection process, followed by analysing all aspects of the 3PLP selection problem and the selected MCDM methods in view of common criteria, finishing with a decision tree, divided into seven branches that orient the decision-maker towards his decisions. The paper also contributes to the theory by identifying and evaluating criteria that characterise 3PLP decision-making and by suggesting a suitable order of criteria. A numerical example was implemented to evaluate a proposed framework