Improving sustainability through intelligent cargo and adaptive decision making

In the current society, logistics is faced with the challenge to meet more stringent sustainability goals. Shippers and transport service providers both aim to reduce the carbon footprint of their logistic operations. To do so, optimal use of logistics resources and physical infrastructure should be aimed for. An adaptive decision making process for the selection of a specific transport modality, transport provider and timeslot (aimed at minimisation of the carbon footprint) enables shippers to achieve this. This requires shippers to have access to up-to-date capacity information from transport providers (e.g. current and scheduled loading status of the various transport means and information on carbon footprint) and traffic information (e.g. city logistics and current traffic information). A prerequisite is an adequate infrastructure for collaboration and open exchange of information between the various stakeholders in the logistics value chain to obtain the up-to-date information. This paper gives a view on how such an advanced information infrastructure can be realised, currently being developed within the EU iCargo project. The paper describes a reference logistics value chain, including business benefits for each of the roles in the logistics value chain of aiming for sustainability. A case analysis is presented that reflects a practical situation in which the various roles collaborate and exchange information for realizing sustainability goals, using adaptive decision making for selecting a transport modality, transport provider, and timeslot. A high-level overview is provided of the requirements on and technical implementation of the supporting advanced infrastructure for collaboration and open information exchange.In the current society, logistics is faced with the challenge to meet more stringent sustainability goals. Shippers and transport service providers both aim to reduce the carbon footprint of their logistic operations. To do so, optimal use of logistics resources and physical infrastructure should be aimed for. An adaptive decision making process for the selection of a specific transport modality, transport provider and timeslot (aimed at minimisation of the carbon footprint) enables shippers to achieve this. This requires shippers to have access to up-to-date capacity information from transport providers (e.g. current and scheduled loading status of the various transport means and information on carbon footprint) and traffic information (e.g. city logistics and current traffic information). A prerequisite is an adequate infrastructure for collaboration and open exchange of information between the various stakeholders in the logistics value chain to obtain the up-to-date information. This paper gives a view on how such an advanced information infrastructure can be realised, currently being developed within the EU iCargo project. The paper describes a reference logistics value chain, including business benefits for each of the roles in the logistics value chain of aiming for sustainability. A case analysis is presented that reflects a practical situation in which the various roles collaborate and exchange information for realizing sustainability goals, using adaptive decision making for selecting a transport modality, transport provider, and timeslot. A high-level overview is provided of the requirements on and technical implementation of the supporting advanced infrastructure for collaboration and open information exchange.In the current society, logistics is faced with the challenge to meet more stringent sustainability goals. Shippers and transport service providers both aim to reduce the carbon footprint of their logistic operations. To do so, optimal use of logistics resources and physical infrastructure should be aimed for. An adaptive decision making process for the selection of a specific transport modality, transport provider and timeslot (aimed at minimisation of the carbon footprint) enables shippers to achieve this. This requires shippers to have access to up-to-date capacity information from transport providers (e.g. current and scheduled loading status of the various transport means and information on carbon footprint) and traffic information (e.g. city logistics and current traffic information). A prerequisite is an adequate infrastructure for collaboration and open exchange of information between the various stakeholders in the logistics value chain to obtain the up-to-date information. This paper gives a view on how such an advanced information infrastructure can be realised, currently being developed within the EU iCargo project. The paper describes a reference logistics value chain, including business benefits for each of the roles in the logistics value chain of aiming for sustainability. A case analysis is presented that reflects a practical situation in which the various roles collaborate and exchange information for realizing sustainability goals, using adaptive decision making for selecting a transport modality, transport provider, and timeslot. A high-level overview is provided of the requirements on and technical implementation of the supporting advanced infrastructure for collaboration and open information exchange

Logistics outsourcing and 3PL selection: A Case study in an automotive supply chain

Outsourcing logistics functions to third-party logistics (3PL) providers has been a source of competitive advantage for most companies. Companies cite greater flexibility, operational efficiency, improved customer service levels, and a better focus on their core businesses as part of the advantages of engaging the services of 3PL providers. There are few complete and structured methodologies for selecting a 3PL provider. This paper discusses how one such methodology, namely the Analytic Hierarchy Process (AHP), is used in an automotive supply chain for export parts to redesign the logistics operations and to select a global logistics service provider

The impact of green logistics service quality on logistics provider performance

Paper delivered at the 19th Logistics Research Network annual conference 2014, 3rd-5th September 2014, Huddersfield. Effective and efficient logistics services can enhance the firm’s competitive advantage. Therefore, logistics management can be considered as a key component of organisational effectiveness and success (Khan and Burnes, 2007). At the same time, environmental or green issues in logistics service offerings have attracted much managerial attention in the logistics industry for the future. One important objective is for logistics service providers (LSPs) to deliver their service offerings to customers in more environmentally friendly ways. The study is ongoing project and investigates variables and constructs of green service quality, logistics service quality and logistics performance index in Thailand. The purpose of this paper is to report on an ongoing study of the importance and relationship of green service quality (GSQ) competencies relative to logistics service quality (LSQ) competencies in the context of Thai LSPs

The significance of 'relationship management' as a driver of retention of clients in third party logistics (3PL) : a case study in New Zealand : a thesis presented in partial fulfillment of the requirements for the degree of Master of Logistics and Supply Chain Management at Massey University, Albany, New Zealand

The principal objective of this research was to explore the trend and the role relationship management plays in keeping the Third Party Logistics (3PL) outsourcing businesses together. This research also aimed at highlighting the underlying factors in the business relationships among parties involved in Third Party Logistics (3PL) business, specifically in the New Zealand logistics industry. A literature review was conducted on a significant number of related articles to justify the research objective. This multi-case study has eight participant companies who were selected as representatives of the industry; a majority of them either market leaders or have a significant role in their business category. The eight case participants were classified into two groups: logistics service provider and logistics clients. Due to their unique operational and logistics activities, some participants fell in both categories. In-depth, face-to-face interviews were conducted using semi-structured questionnaires with open-ended questions to tap into the vast industry knowledge and logistics expertise of the participants. Given the infrastructure of the Australasian logistics outsourcing industry, the result of this multi-case study has supported the results, finding, and theories of the previous researchers and academics that relationship management is the key to retaining a loyal customer base and a successful business arrangement between 3PL service providers and their clients

Penalty and reward contracts between a manufacturer and its logistics service provider

Contracts are used to coordinate disparate but interdependent members of the supply chain. Conflicting objectives of these members and lack of coordination among the members lead to inefficiencies in matching supply with demand. This study reviews different types of contracts and proposes a methodology to be used by companies for analyzing coordinating contracts with their business partners. Efficiency of the contract is determined by comparing the performance of independent companies under the contract to the supply chain performance under the central decision maker assumption. We propose a penalty and reward contract between a manufacturer and its logistics service provider that distributes the manufacturer’s products on its retail network. The proposed contract analysis methodology is empirically tested with transportation data of a consumer durable goods company (CDG) and its logistics service provider (LSP). The results of this case study suggest a penalty and reward contract between the CDG and its LSP that improves not only the individual firm’s objective functions but also the supply chain costs. Compared to the existing situation, the coordination efficiency of the penalty and reward contract is 96.1 %, proving that optimizing contract parameters improves coordination and leads to higher efficiencies

Relationship dynamics in logistics

In recent years, a growing number of organisations have outsourced logistics services to logistics services providers (LSPs). To account for greater interconnection between organisations, supply chain relationship is crucial for achieving successful logistics outsourcing. Because organisations need to continuously change their decision-making in outsourcing, relationships among organisations in outsourcing are dynamic. Further, because logistics outsourcing has created more supply chain relationships (SCRs) among suppliers, LSPs, and customers, managers need to use a network perspective to manage multiple relationships in the process of outsourcing. The triadic relationship is recognised as the smallest network structure. As a result, the primary goal of this research is to study dynamics of supply chain relationships in logistics outsourcing from a view of triadic relationship. This relationship is called a logistics triad and consists of a supplier, a logistics service provider (LSP), and their common customer. The present research was carried out in two stages. The first stage collected triadic cases from LSPs. To improve validity and reliability, the second stage used a deductive process to test findings of the first stage by collecting triadic cases from suppliers and customers. Results of the comparison between the two stages provided verified research findings because the two stages exhibited close similarity. The research outcomes led to the identification of factors that influenced the relationship dynamics in logistics triads. Among these factors, the combined effects of purchasing volumes, resource capability, and focal firm can override influences from other factors to determine stability and dynamics of logistics triads. Overall, this research makes several major contributions to the knowledge of supply chain relationships: developing an integrative model of triadic relationship dynamics, identifying control approaches used by organisations to dominate triads, and demonstrating organisations' mediating effects on dyadic relationships within triads

Risk management and the stratification of logistics service provision

This paper stems from a research project undertaken between 2007 and 2010. It discusses the development of supply chain management together with the understanding of the impact of supply chain risk. It gives an overview of the increasing stratification of service provision from first part logistics to joint service consortia and proposes a model balancing risk with service provision