Integrating carrier selection with supplier selection decisions to improve supply chain security

Abstract

AbstractSupply chain security is a major concern for logistics managers who have responsibility for inbound and outbound shipments to and from both domestic and international locations. We propose here that logistics decisions concerning security in the supply chain will be made more effectively when made in concert with decisions in related supply chain processes, especially supplier and carrier selection. Indeed, managers may minimize cost, transit time, and security risk by integrating decision processes internally, as well as with their carrier's and supplier's operations. Thus, we account for both intra‐firm collaboration between logistics and purchasing managers, as well as inter‐firm collaboration among buyers, suppliers, and carriers in a supply chain. In this paper, we propose a decision process that features a set of security rules and a multi‐objective optimization model to accomplish this aim. We then provide an illustration to demonstrate the potential usefulness of these concepts in practice.