Evaluation of the sustainability of party logistics service providers with failure modes and effects analysis method: its application in a company

Abstract

Purpose- The purpose of this research is to increase customer satisfaction and business performance in the sector to eliminate failure situations of the processing phases of the departments of the business and to develop the quality of the system. The objective of this research is to enhance customer satisfaction and business performance by addressing and eliminating failure situations in the processing phases of the business departments and improving the quality of the system. To achieve this, the study focuses on evaluating third-party and fourth-party logistics service providers in the context of sustainability. While there are existing approaches to evaluate party logistics under general headings, there is a lack of specific studies focusing on companies operating in a single field. Therefore, this study aims to fill that gap by examining the business evaluation criteria of third-party and fourth-party logistics service providers for a white goods company in Turkey. Methodology- During the research, the concept of third-party logistics has gained attention within the scope of sustainability, the competition among organizations providing this service has become more intense, as have customer expectations. The research utilizes Failure Mode and Effects Analysis (FMEA) and Pareto Analysis (PA) to assess the sustainability of the supply chain and batch logistics for the company. Findings- As a result of the research, the findings in the direction of quality improvement-development within the scope of the service provided by the business are presented. The initial phase of process enhancement for logistics operations begins with the FMEA results. Development initiatives may begin if improvement initiatives are maintained. Development activities and resources ought to be distributed in accordance with this level of priority with regard to the first work that has to be performed to enhance the process. Conclusion- All risk considerations might not be realized inside a particular process since there are only a limited number of possibilities to be assigned for enhancement prosperity. By conducting risk prevention studies in accordance with the priorities that will be decided upon each period, it is intended to produce continuous improvement. Overall, while it may not be possible to address every risk, prioritizing risks and conducting risk prevention studies can help organizations achieve continuous improvement and increase their chances of success. Keywords: Failure Mode and Effects Analysis (FMEA), Pareto Analysis (PA), party logistics, quality, supply chain, sustainability. JEL Codes: 030, N01, L15, L21, L84