Decision Support System for Operational Risk Management in Supply Chain with 3PL Providers

Abstract

For organizations, it is essential to make good decisions regarding risks present both in the company and in its supply chain. The risk management process includes risk identification, evaluation, prioritization and quantification. The participation of Third Party Logistics providers (3PL) in supply chains has been increasing, and it is important to consider how their presence affects risk management. Finally, a decision support system helps decision makers to process, analyze and define actions related to large amounts of data. We present a multicriteria decision support system for effective management of the operational risks present in a supply chain that includes 3PL providers, specifically in ground transportation of goods. The model is supported by Fuzzy QFD for the prioritization of risks in terms of their impact on the performance indicators that are considered relevant by the actors in the supply chain. Findings indicate that the proposed model allows to prioritize the risks according with the most important indicators and for the case of study we found the most critical risks.