Studying the interrelationship between third party logistic service provider enablers using ISM methodology

Abstract

PurposeThe purpose of this research is to first explore various third party logistic service provider supply chain enablers. Thereafter the interrelationship amongst the various supply chain enablers has been studied using ISM Methodology. Despite the complex relationships third party logistic service providers (3PLs) share with their clients or firms, they often attract a demand owing to the flexibility and competitive edge they provide to their client firms in adapting to the rapidly changing market conditions, focusing on their core competencies and developing long-term growth strategies for them. Choosing and evaluating the right third-party logistic service provider is an important responsibility for logistic managers. This largely depends on selecting appropriate 3PLs supply chain enablers that assess the 3PLs on different fronts.Design/methodology/approachThis paper presents an ISM approach for studying the interrelationships between various 3PLs enablers and accordingly constructing a hierarchical structure of them.FindingsThe results suggest that delivery, service reliability and risk and uncertainty factors have the highest importance.Research limitations/implicationsSelection of the 3PLs is a critical issue when they are required to be selected by the company at the global level. This often requires doing a comparative study for both domestic as well as global service providers. Choosing appropriate supply chain enablers as the basis for selection of 3PLs therefore will serve as a research topic to be further explored both by researchers as well as company managers. Further studying the inter-relationships amongst various supply chain enablers will provide basis to managers to justify their choice.Originality/valueThe novelty of the research lies in the application of methodology to the case of third-party logistic service provider selection