Selection of third-party logistics service providers (3PL) under the sustainable supply chain management

Abstract

This study aims to determine the decision-making criteria for selecting third-party logistics service provider (3PL), under sustainable supply chain perspectives. The research methodology involves two stages. First, 3PL selection criteria were identified through a comprehensive literature review and an interview process involving a group of experts managing sustainable supply chains. Then, each criterion was assigned to one of the categories of triple bottom line (TBL) concept by thirteen experts through Q-sort technique. Twelve out of twenty-three criteria were selected for the next stage, based on an acceptable consensus ratio. In the second stage, further thirty-five experts were asked to identify relative weight of importance among those twelve criteria with respect to each of TBL dimension. In this stage, Fuzzy analytical hierarchy process (FAHP) was applied to prioritize TBL dimensions and weight of each 3PL decision making criterion. Results indicate that economic dimension is the most important aspect, comprising of four individual decision making criteria for selection of 3PL service providers. Research findings were validated via a single case study from Australian automotive industry. The proposed model provides guidelines for practitioners better understand holistic view of issues concerning selection of third party logistics providers when considering triple bottom line goals. However, the proposed approach, with no interrelationships among sub-criteria incorporated means that the model is limited in its applicability. Thus, further research should focus on the interdependencies that play a role in comprehensive selection process