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

A New Approach to Supplier Selection Problem: An Introduction of AHP-SCOR Integrated Model

Nowadays manufacturing industry is growing rapidly and large numbers of added value in business activities has been exercised. Supplier selection problem has improved in many areas by evaluation of supplier to increase supply chain performance. Supplier selection is one of the most important aspects in manufacturing industry. This paper suggest a combination techniques of Analytical Hierarchy Process (AHP) together with Supply Chain Operation Reference (SCOR) model to develop new decision support system (DSS) to the industry. There are four stages in supplier selection process which employed the norm stages of supplier selection process: data gathering, AHP calculation, SCOR evaluation, and implementation of decision making. Data analyzed was aligned with evaluation of data to synthesize of priorities and consistencies measurement. Organization’s decision maker would gain benefits and acquire competitive advantage providing DSS practitioners to achieve a success of the holistic approach in future decision support system. DOI: 10.17762/ijritcc2321-8169.15016

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

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

The utilization of key performance indicator appraisal for logistics outsourcing : a case of Defy appliances.

Master of Commerce in Management. University of KwaZulu-Natal, Durban, 2017.Background: Companies and customers around the world are embracing the trend of outsourcing their logistics requirements to outside logistics service providers. That being said, KPI appraisal can be regarded as an effective and reliable technique as to how a manufacturing company can measure the performance of its 3PL providers. Purpose: This research determined what factors motivate companies in their decisions to outsource their logistics needs to external logistics service providers as well as understand the logistics outsourcing process used to select 3PL providers. Moreover, the purpose of this research understood how performance measurement adds value to Defy’s operations and how KPI appraisal improves Defy’s relationships with its 3PL providers. This research also discovered a distinct list of KPIs that can be used by Defy in its efforts to measure the performance of its transporters. Lastly, the aim of this research is to examine the risks of logistics outsourcing and the remedial strategies that can be utilized to combat these risks. Methodology: This research is descriptive in nature and a case study approach was adopted. The empirical study included in-depth interviews with the executive and senior management of Defy whereby the use of open-ended questions were adopted to provide insight into the various facets of logistics outsourcing at Defy Appliances. A non-probability, purposive sampling method was used to select the participating company and its participants. Findings: The findings of this research indicated that there are eleven motivating factors that drive logistics outsourcing. Defy can also utilize a logistics outsourcing process that comprises seven steps. Additionally, this research determined that there are ten KPIs that Defy’s senior management can use to gauge the performance of its 3PL providers. Lastly, there are thirteen dangers that Defy can encounter in its efforts to outsource its logistics requirements, however, Defy has eleven remedial strategies to combat the dangers. Contribution: The field of logistics outsourcing and KPI appraisal is dynamic. There is a dearth of research dealing with KPI appraisal as a tool for successful logistics outsourcing in the leading companies of South Africa’s appliances industry. Therefore, it is envisaged that this research will play a momentous role in the field by offering fresh insights as well as contributing to the body of knowledge concerning logistics outsourcing and KPI appraisal