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

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

The state of the art development of AHP (1979-2017): A literature review with a social network analysis

Although many papers describe the evolution of the analytic hierarchy process (AHP), most adopt a subjective approach. This paper examines the pattern of development of the AHP research field using social network analysis and scientometrics, and identifies its intellectual structure. The objectives are: (i) to trace the pattern of development of AHP research; (ii) to identify the patterns of collaboration among authors; (iii) to identify the most important papers underpinning the development of AHP; and (iv) to discover recent areas of interest. We analyse two types of networks: social networks, that is, co-authorship networks, and cognitive mapping or the network of disciplines affected by AHP. Our analyses are based on 8441 papers published between 1979 and 2017, retrieved from the ISI Web of Science database. To provide a longitudinal perspective on the pattern of evolution of AHP, we analyse these two types of networks during the three periods 1979?1990, 1991?2001 and 2002?2017. We provide some basic statistics on AHP journals and researchers, review the main topics and applications of integrated AHPs and provide direction for future research by highlighting some open questions

A decision model to prioritise logistics performance indicators

This thesis was submitted for the award of Doctor of Philosophy and was awarded by Brunel University LondonPerformance measurement is an important concern that has recently attracted much attention in the logistics area from both practitioners and academics. The performance measurement of logistics companies is based upon diverse performance indicators. However, to date, limited attention has been paid to the performance measurement of logistics companies and, also, performance measurement processes have become more complex for logistics companies due to the existence of numerous performance indicators. In this regard, the way in which decision makers in logistics companies deal with some vaguenesses, such as deciding on the most important indicators holistically and determining interrelationships between performance indicators, has remained an issue that needs to be resolved. This study, therefore, aims to offer a comprehensive decision model for identifying the key logistics performance indicators and determining the interrelationships among these indicators from logisticians’ perspective. In line with this purpose, the research first presents a stakeholder-based Balanced Scorecard (BSC) model which provides a balanced view by including financial and non-financial performance indicators and a comprehensive approach as a response to the major shortcoming of the generic BSC regarding the negligence of various stakeholders. Then, a large number of performance indicators used in logistics are systematically examined under the proposed model, and the key indicators are selected through an online survey conducted in the Turkish logistics industry. Subsequently, since the performance measurement indicators are not independent of each other, it is critical to understand the causal relationships among different indicators. In such cases, group decision making techniques are capable of modelling such complexities. After a systematic comparison of these techniques, a realistic and easy-to-follow multi-criteria decision making technique, the Analytic Network Process (ANP), is revealed as a suitably powerful method to determine the interrelationships among the indicators. Additionally, a case study approach based on the data obtained from three logistics companies is used to illustrate both the applicability of the model and the practicality of the ANP application. Furthermore, the sensitivity of the results about the case companies is also analysed with several relevant ‘what-if’ scenarios. Thus, real-life practices of three case companies are investigated with the proposed approach. Consequently, this research proposes the BSC-ANP integration which provides a novel way and in-depth understanding to evaluate logistics performance indicators for the competitiveness of logistics companies. Thus, in order to address the aforementioned vaguenesses, the proposed model in this study identifies key performance indicators with the consideration of various stakeholders in the logistics industry to decide on the most important indicators, and evaluates the interrelationships among the indicators by using the ANP. The results of the study show that the educated employee (15.61%) is the most important indicator for the competitiveness of logistics companies and four prominent indicators (educated employee, managerial skills, cost, and profitability) need to be primarily considered by logistics companies. In this way, with this integration, not only the performance indicators in logistics, but also different stakeholders of logistics companies are assessed by the ANP method. This means that the results of this research are not only useful for helping logistics companies to decide which indicators should be focused on to become more competitive, but also can be used as a reference model by different stakeholders in their decision-making processes in order to select the best logistics provider. Keywords: Performance measurement; logistics performance indicators; balanced scorecard (BSC); analytic network process (ANP); multi-criteria decision making (MCDM); stakeholder

The state of the art development of AHP (1979-2017): a literature review with a social network analysis

Although many papers describe the evolution of the analytic hierarchy process (AHP), most adopt a subjective approach. This paper examines the pattern of development of the AHP research field using social network analysis and scientometrics, and identifies its intellectual structure. The objectives are: (i) to trace the pattern of development of AHP research; (ii) to identify the patterns of collaboration among authors; (iii) to identify the most important papers underpinning the development of AHP; and (iv) to discover recent areas of interest. We analyse two types of networks: social networks, that is, co-authorship networks, and cognitive mapping or the network of disciplines affected by AHP. Our analyses are based on 8441 papers published between 1979 and 2017, retrieved from the ISI Web of Science database. To provide a longitudinal perspective on the pattern of evolution of AHP, we analyse these two types of networks during the three periods 1979–1990, 1991–2001 and 2002–2017. We provide some basic statistics on AHP journals and researchers, review the main topics and applications of integrated AHPs and provide direction for future research by highlighting some open questions

Sustainable Supply Chain Management

The book is a collection of studies dedicated to different perspectives of three dimensions or pillars of the sustainability of supply chain and supply chain management - economic, environmental, and social - and other aspects related to performance evaluation, optimization, and modelling of and for sustainable supply chain management, and thus presents another valuable contribution to sustainable development and sustainable way of life

Advanced decision making in sustainable city logistics projects : criteria and, risk identification and assessment

Les villes sont les lieux de la plus grande concentration d'activités sociales et économiques. La logistique est l'une des plus importants éléments de la durabilité et de l'économie d’une la ville. Pour la logistique urbaine, il est nécessaire de prendre en compte les caractéristiques de la ville et les objectifs de toutes les parties prenantes (expéditeurs, destinataires, transporteurs, prestataires de services logistiques, résidents, gouvernement de la ville). Les plans de logistique urbaine durable pourraient avoir un impact significatif sur la qualité de la vie en milieu urbain. L'évaluation d'initiatives de logistique de ville durable (SCLI) telles que les centres de distribution urbains, la tarification de la congestion, le délai de livraison et les restrictions d'accès est un problème complexe, car plusieurs critères et contraintes subjectifs et objectifs doivent être pris en compte. Les administrations municipales investissent dans des initiatives de logistique urbaine durable telles que les centres de distribution urbains, la tarification de la congestion, le calendrier de livraison et les restrictions d'accès afin d'améliorer les conditions de transport de marchandises dans les villes et de réduire leurs impacts négatifs sur les citoyens et leur environnement. Cependant, il y a toujours des risques dynamiques associés à la sélection. L’analyse des risques des initiatives de logistique urbaine est une tâche complexe en raison de la multiplicité des facteurs de risque et de leurs dépendances. Bien qu'il n'y ait pas beaucoup d'études sur les risques liés à la logistique urbaine, aucune attention n'a été portée à l'analyse des risques liés à la logistique urbaine en prenant en compte les dépendances entre les facteurs de risque et leurs critères. Considérer les dépendances entre les facteurs de risque pourrait conduire à une analyse plus précise des risques et augmenter le taux de réussite de la sélection des initiatives de logistique urbaine. Méthodes: pour résoudre ce problème, nous proposons un outil avancé d'aide à la décision appelé «cartescognitives floues» (FCM), capable de gérer les risques associés à des systèmes aussi complexes. La FCM représente avec précision le comportement de systèmes complexes et peut prendre en compte les incertitudes, les informations imprécises, les interactions entre les facteurs de risque, la rareté de l'information et les opinions de plusieurs décideurs. En outre, il pourrait être appliqué à différents problèmes de prise de décision liés aux initiatives de logistique de ville durable (SCLI). Par conséquent, l'outil proposé aiderait les praticiens à gérer les risques liés à la logistique urbaine d'une manière plus efficace et proactive et offrirait de meilleures solutions d'atténuation des risques. Dans les études précédentes, les méthodes de décision multicritères étaient principalement utilisées pour l'évaluation, la comparaison et la sélection d'initiatives logistiques de villes en fonction des effets obtenus ou prévus résultant de leur introduction dans divers environnements urbains. Afin d'évaluer l'adéquation des solutions conceptuelles aux exigences des différentes parties prenantes et conformément aux attributs spécifiques de l'environnement urbain, il convient de définir des solutions conceptuelles associant différentes initiatives de logistique urbaine en utilisant un processus artificiel; outils de renseignement, y compris la FCM.The cities are the places of the largest concentration of social activities and economic. Logistics is one of the most important for the sustainability and the economy of the city. Inselecting the city logistics concept, it is necessary to consider the characteristics of the city and the goals of all the stakeholders (shippers, receivers, carriers, logistics service providers, residents, city government). Sustainable city logistics (SCL) plans could significantly affect the quality of life in the urban environment. Evaluating sustainable city logistics initiatives (SCLI) such as urban distribution centres, congestion pricing, delivery timing and access restrictions is a complex problem since several subjective and objective criteria and constraints should be considered. Municipal administrations are investing in sustainable city logistics initiatives (SCLI) such as urban distribution centres, congestion pricing, delivery timing and access restrictions in order to improve the condition of goods transport in cities and reduce their negative impacts on citizens and their environment. However, there is always some dynamic risks associated that should be selected. Risk analysis of sustainable city logistics initiatives is a complex task due to consisting of many risk factors with dependencies among them. Although there are no lots of studies on sustainable city logistics risks, no attention has been paid to the risk analysis of sustainable city logistics by considering the dependencies among risk factors and their criteria. Considering the dependencies among risk factors could lead to more precise risks analysis and increase the success rate of selecting sustainable city logistics initiatives. Methods: To address this, we are proposing an advanced decision support tool called "Fuzzy Cognitive Maps" (FCM) which can deal with risks of such complicated systems. FCM represents the behaviour of complex systems accurately and is able to consider uncertainties, imprecise information, the interactions between risk factors, information scarcity, and several decision maker's opinions. In addition, it could be applied to different decision makings problems related to sustainable city logistics initiatives (SCLI). Therefore, the proposed tool would help practitioners to manage sustainable city logistics risks in a more effective and proactive way and offer better risk mitigation solutions. In previous studies, multi-criteriadecision-making methods are mainly used for the evaluation, comparison and selection of individual sustainable city logistics initiatives in relation to the achieved or planned effects resulting from their introduction in various urban environments. In order to assess the suitability of the conceptual solutions to the requirements of different stakeholders, and in accordance with the specific attributes of the urban environment, there is the definition of conceptual solutions that combine different sustainable city logistics initiatives by using an artificial; intelligence tools including FCM

Multi-objective optimisation of dynamic short-term credit portfolio selection :the adoption of third party logistics credit for financing working capital contrained small and medium sized enterprises in supply chains

PhD ThesisMany companies, especially small and medium sized enterprises, are faced with liquidity problems. The shortage of working capital in their businesses has prevented supply chains from achieving effectiveness and efficiency in management. Although they can access short-term loans from banks and suppliers, the willingness of these credit lenders to lend short-term capital is often restricted by the fact that they cannot monitor whether or how their customers will use the loans according to the agreements. In many cases, this fact makes it difficult for capitalconstrained companies to obtain sufficient working capital from existing funding sources. A business practice called Integrated Logistics and Financial Service has been developed, which can improve banks’ monitoring of how their loans will eventually be used via the alliance of third party logistics companies and banks. The emergence of credit offered by third party logistics companies (termed as 3PLC) provides more choices for working capital constrained companies. Following on traditional bank overdrafts and trade credit, the new 3PLC became the third type of credit available to short-term working capital constrained companies. A new issue arising from this situation is how a working capital constrained company can determine a credit portfolio from multiple working capital sources. Current studies of credit portfolio management are still silent in considering 3PLC. Moreover, limited studies have integrated credit portfolio management into material flow management in supply chains. In light of the aforementioned discussions, this thesis aims to optimise dynamic credit portfolio management in supply chains to achieve the different business objectives of working capital constrained companies. To achieve the above aims, this thesis firstly applies an analytic hierarchy process and linear programming model to optimise a single objective. It applies the analytic hierarchy process to evaluate the concerns of working capital-constrained companies in selecting credit. These concerns are identified through a thorough literature review focusing on the considerations of small and medium sized enterprises’ in borrowing short-term credit. The analytic hierarchy process has been applied to determine the priority of the identified concerns and the preferences of borrowers for bank overdrafts, trade credit and 3PLC. A linear programming model has been developed based on the results obtained from the analytic hierarchy process model. It determines the maximum borrowing amount for a given period from multiple credit sources. To reflect the complexity of working capital constrained companies borrowing credit, thisthesis has extended the model from single objective optimisation to multiple objectives optimisation. Consequently, a goal-programming model has been developed. This model provides the solution of optimizing two business objectives including overall cost and backorder penalty cost minimization. Numerical examples have been conducted to test and analyse all the mathematical models. This thesis contributes the following aspects: 1) the new 3PLC together with bank overdraft and trade credit have been considered into credit portfolio management; 2) borrower’s concerns and credit preferences relating to the three types of credit have been identified and evaluated; 3) mathematical models have been developed for credit portfolio selection over multiple periods

An Integrated Decision-Making Method Based on Neutrosophic Numbers for Investigating Factors of Coastal Erosion

The recent boom of various integrated decision-making methods has attracted many researchers to the field. The recent integrated Analytic Network Process and Decision Making Trial and Evaluation Laboratory (ANP–DEMATEL) methods were developed based on crisp numbers and fuzzy numbers. However, these numbers are incapable of dealing with the indeterminant and inconsistent information that exists in real-life problems

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