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

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

Selection and evaluation of third party logistics in the supply chain: A systematic review

[ES] A nivel mundial se estima que más del 85% de las principales empresas utilizan servicios logísticos externos, con tasas de crecimiento de este mercado de servicios proyectadas entre el 18 y 22% por año. Esta tendencia ha gene rado un creciente interés en los investigadores de la cadena de suministro por proponer diferentes enfoques para la selección y evaluación del desempeño de los proveedores de logística externa (3PL). En este artículo se propone una revisión sistemática analizando una muestra de artículos publicados en revistas indexadas con el objetivo de identificar las principales contribuciones sobre este tema. Este estudio muestra que la evaluación y selección de un 3PL es una decisión crítica y compleja, debido a la existencia de varios criterios de base imprecisa y subjetiva. Como resultado, se presentan características metodológicas, enfoques utilizados, modelos aplicados, atributos de las revistas e industrias que utilizan proveedores de logística externa. El costo, las tecnologías de la información implementadas por los proveedores de logística y la efectividad en los envíos y entregas a tiempo, son los criterios más valorados por las empresas para la evaluación y selección de 3PL. Los resultados de este estudio sirven a apoyo a los investigadores, como referencia que permite identificar algunas posibilidades para futuras investigaciones en el campo de los proveedores que ofertan servicios de logística externa, impulsando la competitividad en la cadena de suministro.[EN] Worldwide it is estimated that more than 85% of the main companies used external logistics services, with growth rates of this services market projected between 18 and 22 percent per year. This trend has generated a growing interest in supply chain researchers to propose different approaches for the selection and evaluation of the performance of third party logistics (3PL). This article proposes a systematic review analyzing a sample of articles published in indexed journals in order to identify the main contributions on this topic. This study shows the evaluation and selection of a 3PL is a critical and complex decision, due to the existence of several criteria of imprecise and subjective basis. As a result, methodological characteristics, approaches used, models applied, attributes of the magazines, and industries that use external logistics providers are presented. Cost, information technology implemented by logistics providers, and the effectiveness of shipments and deliveries on time, are the most valued criteria by companies for the evaluation and selection of 3PL. The results of this study provide support to researchers, as a reference that allows identifying some possibilities for future research in the field of providers that offer external logistics services, promoting competitiveness in the supply chain.Los autores expresan su reconocimiento al PRODEP UAEH (proyecto EXB-152), por el apoyo otorgado para la realización de este estudio

Strategic Logistics Outsourcing:Integrated Models for Evaluating and Selecting Logistics Service Providers (LSPs) Upstream/Downstream Supply Chain Comparison

This research aims to maximize the logistics outsourcing benefits through developing new hybrid models for evaluating and selecting Logistics Service Providers (LSPs). The growing demand for logistics outsourcing and the increase in the number and type of LSPs highlight the increasing importance of the LSP evaluation and selection process. Firms use various approaches to evaluate and select their LSP partners. Most of these approaches seem to have overlooked the strategic side of the logistics outsourcing process. Additionally, the uncertainty issue of data, the complexity of the decision and the large number of criteria involved increase the attractiveness of the Multi-Criteria Decision-Making (MCDM) approaches. A comparative literature review was used in order to identify crucial factors and methods that are used in logistics literature in fragmented ways and therefore, to establish and design a conceptual framework and models for logistics outsourcing. First, a long list of evaluation criteria was developed. Three main dimensions were identified: logistics performance, logistics resources and logistics services. Then a conceptual framework was developed using the three main dimensions with their related factors. Based on the comparative literature review outcomes, a number of integrated models have been developed and used to achieve this aim with emphasis given to FDEMATEL, FTOPSIS and FQFD techniques. Whereas the FDEMATEL technique contributed to construct influence relationships between factors under each dimension, develop impact-relationship maps and identify dependent and independent success factors (ISFs), the FTOPSIS technique used the weighted success factors to evaluate, rank and select the best LSP in three case studies. Twenty-one ISFs have been identified to be used in the final approach. These ISFs consist of eight LKPIs, seven logistics services and six logistics resources and capabilities. All of the factors were used to evaluate and select the best LSP alternative and ISFs were used to conduct the evaluation process. Different sensitivity analysis tests are used to confirm models’ robustness. Based on the outcomes of both cases, decision makers can use independent factors alone to evaluate and select the best LSP, which simplified the logistics outsourcing process in our study. The FQFD technique was used to link the LSUs strategic objectives with logistics requirements and the ISFs to develop a new strategic logistics outsourcing approach. Finally, two case studies representing the supply chain upstream and downstream are used to demonstrate the new hybrid approach effectiveness. The comparison of both cases’ findings highlighted their differences in terms of strategic objectives, logistics requirements and ISFs

Sustainable supply chain network design integrating logistics outsourcing decisions in the context of uncertainties

Les fournisseurs de services logistiques (3PLs) possèdent des potentialités pour activer les pratiques de développement durables entre les différents partenaires d’une chaîne logistique (Supply Chain SC). Il existe un niveau optimal d'intégration des 3PLs en tant que fournisseurs, pour s’attendre à des performances opérationnelles élevées au sein de toute la SC. Ce niveau se traduit par la distinction des activités logistiques à externaliser de celles à effectuer en interne. Une fois que les activités logistiques externalisés sont stratégiquement identifiées, et tactiquement dimensionnées, elles doivent être effectuées par des 3PLs appropriés afin d’endurer les performances économiques ; sociales ; et environnementales de la SC. La présente thèse développe une approche holistique pour concevoir une SC durable intégrant les 3PLs, dans un contexte incertain d’affaires et politique de carbone. Premièrement, une approche de modélisation stochastique en deux étapes est suggérée pour optimiser à la fois le niveau d'intégration des 3PLs, et le niveau d'investissement en technologies sobres au carbone, et ce dans le contexte d’une SC résiliente aux changements climatiques. Notre SC est structurée de façon à capturer trois principales préoccupations du Supply Chain Management d’une entreprise focale FC (e. g. le fabricant) : Sécurité d’approvisionnement, Segmentation de distribution, et Responsabilité élargie des producteurs. La première étape de l'approche de modélisation suggère un plan stochastique basé sur des scenarios plus probables, afin de capturer les incertitudes inhérentes à tout environnement d’affaires (e. g. la fluctuation de la demande des différents produits ; la qualité et la quantité de retour des produits déjà utilisés ; et l’évolution des différents coûts logistiques en fonction du temps). Puis, elle propose un modèle de programmation stochastique bi-objectif, multi-période, et multi-produit. Le modèle de programmation quadratique, et non linéaire consiste à minimiser simultanément le coût logistique total espéré, et les émissions de Gaz à effet de Serre de la SC fermée. L'exécution du modèle au moyen d'un algorithme basé sur la méthode Epsilon-contraint conduit à un ensemble de configurations Pareto optimales d’une SC dé- carbonisée, avant tout investissement en technologie sobre au carbone. Chacune de ces configurations sépare les activités logistiques à externaliser de celles à effectuer en interne. La deuxième étape de l'approche de modélisation permet aux décideurs de choisir la meilleure configuration de la SC parmi les configurations Pareto optimales identifiées. Le concept de Prix du Carbone Interne est utilisé pour établir un plan stochastique du prix de carbone, dans le cadre d'un régime de déclaration volontaire du carbone. Nous proposons un ensemble des technologies sobres au carbone, dans le domaine de transport des marchandises, disposées à concourir pour contrer les politiques incertaines de carbone. Un modèle stochastique combinatoire, et linéaire est développé pour minimiser le coût total espéré, sous contraintes de l’abattement du carbone; limitation du budget, et la priorité attribuée pour chaque Technologie Réductrice de carbone (Low Carbone Reduction LCR). L'injection de chaque solution Pareto dans le modèle, et la résolution du modèle conduisent à sélectionner la configuration de la SC, la plus résiliente aux changements climatiques. Cette configuration définit non seulement le plan d'investissement optimal en LCR, mais aussi le niveau optimal d’externalisation de la logistique dans la SC. Deuxièmement, une fois que les activités logistiques à externaliser sont stratégiquement définies et tactiquement dimensionnées, elles ont besoin d’être effectuées par des 3PL appropriées, afin de soutenir la FC à construire une SC durable et résiliente. Nous suggérons DEA-QFD / Fuzzy AHP- Conception robuste de Taguchi : Une approche intégrée & robuste, pour sélectionner les 3PL candidats les plus efficients. Les critères durables et les risques liés à l’environnement d’affaires, sont identifiés, classés et ordonnés. Le Déploiement de la Fonction Qualité (QFD) est renforcé par le Processus Hiérarchique Analytique (AHP), et par la logique floue pour déterminer avec consistance l'importance relative de chaque facteur de décision, et ce, conformément aux besoins logistiques réels, et stratégies d'affaires de la FC. L’Analyse d’Enveloppement des Données (DEA) Data Envelopment Analysis conduit à limiter la liste des candidats, uniquement à ceux d’efficiences comparables, et donc excluant tout candidat moins efficient. La technique de conception robuste Taguchi permet de réaliser un plan d'expérience qui détermine un candidat idéal nommé 'optimum de Taguchi' ; un Benchmark pour comparer les 3PLs candidats. Par suite, le 3PL le plus efficient est celui le plus proche de cet optimum. Nous conduisons actuellement une étude de cas d’une entreprise qui fabrique et commercialise les fours à micro-ondes pour valider la modélisation stochastique en deux étapes. Certains aspects concernant l’application de l’approche sont reportés. Enfin, un exemple de sélection d’un 3PL durable pour s’occuper de la logistique inverse est fourni, pour démontrer l'applicabilité de l'approche intégrée & robuste, et montrer sa puissance par rapport aux approches populaires de sélection.The Third-Party Logistics service providers (3PLs) have the potentialities to activate sustainable practices between different partners of a Supply Chain (SC). There exists an optimal level of integrating 3PLs as suppliers of a Focal Company within the SC, to expect for high operational performances. This level leads to distinguish all the logistics activities to outsource from those to perform in-house. Once the outsourced logistics activities are strategically identified, and tactically dimensioned, they need to be performed by appropriate 3PLs to sustain economic, social and environmental performances of the SC. The present thesis develops a holistic approach to design a sustainable supply chain integrating 3PLs, in the context of business and carbon policy uncertainties. First, a two-stage stochastic modelling approach is suggested to optimize both the level of 3PL integration, and of Low Carbon Reduction LCR investment within a climate change resilient SC. Our SC is structured to capture three main SC management issues of the Focal Company FC (e.g. The manufacturer) : Security of Supplies; Distribution Segmentation; and Extended Producer Responsibility. The first-stage of the modelling approach suggests a stochastic plan based scenarios capturing business uncertainties, and proposes a two-objective, multi-period, and multi-product programming model, for minimizing simultaneously, the expected logistics total cost, and the Green House Gas GHG emissions of the whole SC. The run of the model by means of a suggested Epsilon-constraint algorithm leads to a set of Pareto optimal decarbonized SC configurations, before any LCR investment. Each one of these configurations distinguishes the logistics activities to be outsourced, from those to be performed in-house. The second-stage of the modelling approach helps the decision makers to select the best Pareto optimal SC configuration. The concept of internal carbon price is used to establish a stochastic plan of carbon price in the context of a voluntary carbon disclosure regime, and we propose a set of LCR technologies in the freight transportation domain ready to compete for counteracting the uncertain carbon policies. A combinatory model is developed to minimize the total expected cost, under the constraints of; carbon abatement, budget limitation, and LCR investment priorities. The injection of each Pareto optimal solution in the model, and the resolution lead to select the most efficient climate resilient SC configuration, which defines not only the optimal plan of LCR investment, but the optimal level of logistics outsourcing within the SC as well. Secondly, once the outsourced logistics are strategically defined they need to be performed by appropriate 3PLs for supporting the FC to build a Sustainable SC. We suggest the DEA-QFD/Fuzzy AHP-Taguchi Robust Design: a robust integrated selection approach to select the most efficient 3PL candidates. Sustainable criteria, and risks related to business environment are identified, categorized, and ordered. Quality Function Deployment (QFD) is reinforced by Analytic Hierarchic Process (AHP), and Fuzzy logic, to consistently determine the relative importance of each decision factor according to the real logistics needs, and business strategies of the FC. Data Envelopment Analysis leads to shorten the list of candidates to only those of comparative efficiencies. The Taguchi Robust Design technique allows to perform a plan of experiment, for determining an ideal candidate named ‘optimum of Taguchi’. This benchmark is used to compare the remainder 3Pls candidates, and the most efficient 3PL is the closest one to this optimum.We are currently conducting a case study of a company that manufactures and markets microwave ovens for validating the two-stage stochastic approach, and certain aspects of its implementation are provided. Finally, an example of selecting a sustainable 3PL, to handle reverse logistics is given for demonstrating the applicability of the integrated & robust approach, and showing its power compared to popular selection approaches. Keywords:Third Party Logistics; Green Supply Chain design; Stochastic Multi-Objective Optimization; Carbon Pricing; Taguchi Robust Design

Advanced Modeling, Control, and Optimization Methods in Power Hybrid Systems - 2021

The climate changes that are becoming visible today are a challenge for the global research community. In this context, renewable energy sources, fuel cell systems and other energy generating sources must be optimally combined and connected to the grid system using advanced energy transaction methods. As this reprint presents the latest solutions in the implementation of fuel cell and renewable energy in mobile and stationary applications such as hybrid and microgrid power systems based on the Energy Internet, blockchain technology and smart contracts, we hope that they will be of interest to readers working in the related fields mentioned above

Research in Supply Chain Management: Issue and Area Development

Today the study of supply chain management (SCM) is growing rapidly and provides a great opportunity to do research both empirical and theoretical development. Research opportunities in SCM has been reviewed by many researchers and grouped into many categories. This paper contains a review of research SCM and classify into 7 categories, namely (1) SCM Operational Management & Strategy, (2) knowledge management, (3) Relationship Management, (4) Information Technology in SCM, (5) Supply Chain Design, Logistics & Infrastructure, (6) Global Issues, (7) Environment, Legal & Regulations. The issue in each category and research opportunities will be discussed in this paper. Keywords: Supply Chain Management, Research Opportunities in SCM, Issue in SC