Environmentally Sustainable Logistics Performance Management Process Integration between Buyers and 3PLs

Abstract

To ensure environmentally sustainable logistics, organizations need to have an environmentally sustainable logistics performance management (ESLPM) process. In line with supply chain management (SCM) literature, there is a desire towards integrating processes with supply chain partners to increase performance. The purpose of this paper is to propose a framework for ESLPM process integration and to illustrate this framework in practice between buyers and third-party logistics (3PLs) providers. The method used is multiple case studies of three dyads of 3PLs and buyers from the public and private sector. Data were collected through 10 semi-structured interviews. Our major result is a proposed framework with criteria for the degree of ESLPM process integration between buyers and 3PLs. It includes six activities: Selecting environmentally sustainable logistics performance (ESLP) variables, defining ESLP metrics, setting ESLP targets, measuring ESLP metrics, ESLPM feedback, and analyzing ESLP outcomes and processes. It considers suggested operationalization of each activity and the corresponding degree of integration. The framework can provide guidelines for practitioners in identifying current degree of process integration. It may also support decisions regarding actions needed to advance to a higher degree. This framework is the first to address logistics performance management process integration including environmental sustainability.