Evaluation of logistics providers for sustainable service quality: Analytics based decision making framework

Abstract

In the present era of the circular economy, sustainable service quality has become an order winning criteria for all logistics provider across the world. The selection of appropriate logistics service providers (LSPs) greatly influences the performance of supply chains in terms of sustainability indicators. Most of the previous studies have not considered sustainability measures in the evaluation of logistics service providers. Therefore, the uniqueness of this study is that we are proposing a framework for selecting the best logistics provider based on sustainable service quality. Total seventeen attributes related to sustainable service quality are finalized based on literature review and subsequent focused group discussions. Through a questionnaire-based survey, data from 150 customers of LSPs are collected. Data is analysed through factor analysis and seventeen attributes of sustainable service quality are categorized into five factors namely Commitment, Competence, Communication, Creativity & Customization, and Coordination and Collaboration. It is named as a 5C framework. This framework is further used to illustrate the selection of best LSP based on sustainable service quality. Listed attributes are evaluated through hybrid Fuzzy Analytic Hierarchy Process (AHP) and Fuzzy Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) techniques. This decision-making framework is illustrated with the help of a real-life case study. Sensitivity analysis is also done to validate the robustness of the proposed framework. From this study, it has been observed that the development of competencies for the adoption of sustainable practices should be the thrust area for logistics service providers. Findings imply that the logistics providers should give more focus on sustainable network optimization, response time reduction, reliable green services, flexibility in green processes, and development of mutual trust with all stakeholders to become the first choice of their customers. Insights from the study will help LSPs to develop their strategies for ensuring sustainable service quality to customers.