3PL Service Research Articles

Developing a product–service system through a productisation strategy: a case from the 3PL industry

A Product–Service System (PSS) is created by combing a tangible product and an intangible service into one integrated offering. Thus, a PSS can be achieved by a production company adding intangible services to a product using a servitisation strategy or by a service company adding a tangible product to a service by means of a productisation strategy. The focus of this paper is on the latter. Our work demonstrates a significant gap in the literature in this area. To address this, we adapt an existing PSS conceptual framework as a means to identify the driving and restraining forces considered by a service company as it explored the possibility of pursuing a PSS productisation strategy. The conceptual framework is applied in an exploratory case study with a 3PL service provider. Application of the framework reveals new driving and restraining forces not previously discussed in the literature. Furthermore, it allows a preliminary quantification of the driving and restraining forces using a force field analysis approach. Our work contributes towards the expansion of the empirical knowledge base in the area of PSS.

The Implementation Of Analytic Nalytic Hierarchy Process In Pharmaceutical Industry For Selection Process Of 3rd Party Logistics Service Provider

Deciding to outsource a company’s warehousing and distribution is never easy. Although cost is certainly one of the major considerations, there are many other criteria such as quality, reputation and service level that are part of the decision making process. Many companies from different industries prefer to outsource logistics activities by evaluating different information when choosing the right logistics partner. Through this, companies also gain experience about working with a strategic partner for outsourcing. Also, the experience/former performance of the potential partner is one of the most important performance indicator and decision criteria for the logistics provider selection. Therefore, experience is one of the key driver in decision making process. Since pharmaceutical industry has its own priorities due to stricter quality standards, the experience related to the former performance is a more relevant factor in the decision criteria. In this study, the analytic hierarchy process (AHP) was applied to evaluate selection process of 3PL service providers in pharmaceutical industry. Also, the relative weights of the four criteria and twelve sub-criteria were determined to select the most important criteria in pharmaceutical industry which was experience with its factor weight of 32.40%.

Cold chain logistics for frozen food at tourism destinations

Purpose- The purpose of this paper is to explore possible distribution system models of cold chain logistics for frozen food producers serving to tourism enterprises. Methodology- The data were collected through multiple case study method. The firms interviewed were chosen from the most visited touristic destination in Turkey, Antalya. These firms differed in size and the types of products. Findings- We have observed significant differences in cold chains for tourism and 3PL-oriented retail sectors. The firms serving to tourism sector generally choose not to use 3PLs due to issues on food safety/quality despite the advantages in investment costs. Conclusion- We conclude that the reasons for the reluctance of the producers to work with 3PL providers was the very hot weather and frequent stops made at hospitality facilities which leave the cold chain prone to temperature changes and product damage as well as the high demand during peak seasons which lead to urgent order requests nonconforming to 3PL service schedules.

An integrated location-inventory problem in a closed-loop supply chain with third-party logistics

Third-party logistics (3PL) is a fast growing business. Many large organisations are using 3PL services to reduce operating costs, simplify business processes, and enhance operations and supply chain flexibility. In this paper, we study location-inventory decisions jointly in a closed-loop system with 3PL. First, a model formulation is proposed to develop mixed-integer non-linear programming (MINLP) models for the location-inventory problem under study. Then, a novel heuristics based on differential evolution and the genetic algorithm is designed to solve the MINLP models efficiently. Last, numerical study is presented to illustrate and validate the solution approach.

Evaluation of Third Party Logistics Providers Considering Social Sustainability

In this paper, we investigated a third-party logistics (3PL) provider evaluation problem considering social sustainability as one of the important evaluation criteria. Since the 3PL service is mainly dependent on both transport vehicles and employees, managing them from the viewpoint of social sustainability has become a critical issue. Thus, 3PL providers need to be concerned about not only the service price or quality but also issues related to social sustainability. In line with this trend, we defined the social sustainability of 3PL providers and related evaluation criteria. In addition, a fuzzy analytic hierarchy process (AHP) was used as a main evaluation framework to help decision-makers determine the relative importance of each criteria or alternative using linguistic terms. To show the feasibility of the proposed criteria and evaluation framework, we presented the illustrative example based on a real-world case. The results showed that the proposed approach could be a good alternative to conduct evaluations, and the related sensitivity analysis, considering social sustainability.

3PL evaluation and selection using integrated analytical modeling

PurposeThe purpose of this paper is to propose a framework for evaluating and selecting the most optimal third-party logistics (3PL) service provider vendor among the available ones. Selection is done based on the performance values of the vendors on certain predefined criteria.Design/methodology/approachAn integrated approach involving data envelopment analysis (DEA), technique for order of preference by similarity to ideal solution (TOPSIS) and linear programming (LP) problem has been used to develop a new model for the selection of 3PL vendor. First, DEA is used to evaluate the efficiency of each vendor according to the identified criteria. Second, TOPSIS is applied to rank the maximally efficient vendors. Finally, LP problem is stated and solved to ascertain the quantities to be allocated to each maximally efficient vendor in the context of multiple logistics provider. The proposed DEA–TOPSIS–LP (DETOLP) model is finally tested with real-time industry data for 3PL vendor evaluation and selection. The study, thus, proposes a three-step hierarchical technique for selection of 3PL vendor based on the multiple criteria decision-making approach.FindingsThe paper focuses on assessing the performance of 26 vendors using a combined approach of DEA, TOPSIS and LP. It is observed that vendor V4 outperforms all the considered vendors, which exactly corroborates with the present scenario within the company.Research limitations/implicationsExclusion of qualitative criteria for 3PL vendor selection and the judgment of weights for TOPSIS can be considered as the limitations of the present work. The study has significant practical implications for organizations belonging to any sector or industry. It can help them in evaluating the existing 3PL vendors and selecting the most efficient among them.Originality/valueThis paper deals with a framework modeled for 3PL vendor selection. It is the first attempt to utilize an integrated approach, i.e. DETOLP model for evaluation and selection of 3PL. For assessment of the model, real data from an Indian company has been taken to analyze the result and compare it with the present scenario within the company.

A hybrid approach using data envelopment analysis and artificial neural network for optimising 3PL supplier selection

Today third party logistics (3PL) service providers are into almost all the businesses right from providing raw material to packaging. 3PLs are also getting involved in customers concerned with operations. At a suitable price and consideration of all affecting criteria, anything can be outsourced. Any exporter needs to find a smart balance of what to perform in-house and what to hire outside providers to do (i.e., increase verticals and reduce horizontal supply chain operations). Thus, the demand of 3PL provider has become an important issue for organisations seeking quality customer service and cost reduction. The current research presents an integrated data envelopment analysis (DEA) and artificial neural networks (ANN) methodology for the evaluation and selection of 3PL providers. DEA is employed to identify the maximally efficient 3PL and to eliminate the unsuitable ones; and, ANN to rank and make the final selection. The proposed method enables decision makers to better understand the complete evaluation and selection process of 3PL selection. Furthermore, this approach provides a more accurate, effective, and systematic decision support tool for 3PL selection. Finally, an actual industrial application is presented to demonstrate the proposed method.

Strategic outsourcing objectives drive 3PL selection criteria in India

This paper examines the extent to which supply chain outsourcing objectives determine the selection criteria for 3PL service providers. While the 3PL selection criteria are researched earlier, there is little understanding how they are influenced by the strategic objectives of an organisation. Using a cross-sectional survey of 297 logistics and supply chain professionals from across industries in India, structural equation modelling (SEM) analysis reveals that strategic outsourcing objectives are the likely predictor of the 3PL selection criteria. The respondents perceived higher customer satisfaction, reduction of ICT legacy systems, capital investment avoidance and access to state-of-the-art technology that influence the decision on selection of 3PL service provider. The findings provide shipper managers an insight on how to purposefully assess the selection criteria ensuring their alignment with strategic objectives of outsourcing.

Strategic outsourcing objectives drive 3PL selection criteria in India

This paper examines the extent to which supply chain outsourcing objectives determine the selection criteria for 3PL service providers. While the 3PL selection criteria are researched earlier, there is little understanding how they are influenced by the strategic objectives of an organisation. Using a cross-sectional survey of 297 logistics and supply chain professionals from across industries in India, structural equation modelling (SEM) analysis reveals that strategic outsourcing objectives are the likely predictor of the 3PL selection criteria. The respondents perceived higher customer satisfaction, reduction of ICT legacy systems, capital investment avoidance and access to state-of-the-art technology that influence the decision on selection of 3PL service provider. The findings provide shipper managers an insight on how to purposefully assess the selection criteria ensuring their alignment with strategic objectives of outsourcing.

Decision Support Framework for Selection of 3PL Service Providers: Dominance-Based Approach in Combination with Grey Set Theory

Since past two decades, logistics outsourcing has got immense importance in the context of supply chain management. Logistics outsourcing or outsourcing of third party logistics (3PL) comprises involvement of outside firms to execute logistics activities of a firm efficiently. As deployment of 3PL providers has gained huge momentum in recent times, appropriate selection of 3PL providers seems indeed a necessity. The present work intends to propose a decision support framework for evaluation and selection of 3PL providers in pursuit of fulfilling various business needs. A decision support framework based on dominance measure concept integrated with grey set theory has been projected herein. Result obtained thereof has been compared to that of grey-TOPSIS. A case empirical research has also been reported. The proposed dominance-based decision support system in light of grey set theory has been conceptualized and is basically a simplified version of TODIM and PROMETHEE. It explores dominance between two alternatives with respect to a particular criterion, based on which a global dominance measure is computed to facilitate deriving ranking order of candidate 3PL providers. The proposed approach delineated in this research seems straightforward, easy to execute and can exclude complex and tedious computational steps of TODIM as well as PROMETHEE.

Keeping Cool with Hot Stuff: Safe Collection, Transport and Recycling of Lithium Batteries

With advanced development, e.g. in the field of information technology, telecommunication and e-mobility, the use of lithium batteries is constantly growing and will continue to grow even more during the years to come. Due to their chemical composition and their high energy content, lithium batteries must be handled safely in order to avoid possible hazards. In the context of extended producer responsibility and the taking back of waste lithium batteries this poses a particular challenge for storage, transport and recycling processes. Objective: The strict regulatory framework in Europe sets high standards for the transport (ADR) and recycling (European Battery Directive) of waste lithium batteries. As Europe’s leading service provider for the taking back of used batteries GRS Batterien’s mission is to provide practical end-to-end solutions to its 170,000 collection points and to numerous business partners for logistic and recycling services. The aim is to sustain and further improve the proper, safe and compliant battery collection. Results: GRS Batterien has developed and implemented innovative processes and products to address the needs of all actors in the reverse supply chain for the taking back of used lithium batteries. As the first player in the market GRS Batterien introduced a special transport packaging and obtained the required approval from competent authorities, allowing the safe and compliant transport of damaged lithium batteries with a gross mass exceeding 500 g, independently of their type or chemistry. A proprietary calculation model is utilized to simulate the energetic and chemical impact of a thermal runaway based on a worst case scenario. Specially trained and equipped 3PL service providers are acting as qualified carriers for damaged and defective lithium batteries, applying a sophisticated quality control process. As a result, GRS Batterien is able to safely collect, ship and recycle lithium batteries of various types - from small portable batteries via batteries from e-bikes or gardening tools through to industrial batteries from electric vehicles or smart energy storage systems. Conclusions: During the recent few years GRS Batterien's innovations have significantly improved the collection, the transport and the recycling of lithium batteries. However, additional work will be necessary to further simplify the handling of used lithium batteries. GRS Batterien continues to facilitate improvements, e.g. with R&D activities to develop more efficient recycling technologies or with additional services in related areas.

Companies information technology proficiency in 3PL service supporter selection

Isletmelerin geleneksel yaklasimda tedarik zincirindeki uretim, depolama, tasima, satis gibi tum surecleri kendilerinin gerceklestirdigi ve emek yogun olarak calistigi gorulmustur. Ancak gunumuzdeki yogun rekabet ortami, soz konusu sureclerde cok daha fazla oranda profesyonellesmeye ihtiyac duymaktadir. Dolayisiyla isletmeler acisindan yeniliklere ve surekli gelisime acik olmak zorunluluk halini almistir. Fakat tum sureclerdeki bu yaklasim isletmeler acisindan oldukca maliyetli olmaktadir. Son on yildir yayginlasan dis kaynak kullanimi, bilgi ve iletisim sistemlerindeki gelismelerin katkisiyla, isletmeler uzerindeki maliyet yukunu hafifletmistir. Bu sekilde tum islemler daha kisa surede, daha guvenilir, daha ekonomik ve musteri memnuniyetini de saglayarak surdurebilmektedir. Dis kaynak kullanimi kararlari stratejik kararlardir ve bircok avantaji oldugu gibi riskleri de bulunmaktadir. Dolayisi ile bu tur stratejik kararlari almadan once ciddi calismalar yapmali, bulunulan sektore uygun olan ucuncu taraf lojistik (3PL – Third Party Logistics ) servis saglayicilari secilmelidir. En onemli secim kriterlerinden bir tanesi de 3PL servis saglayicisinin sahip oldugu bilgi teknolojileri yeterliligidir. Bilgi teknolojileri yeterliligi ile ilgili dikkate alinmayan kucuk detaylar onemli kayiplara sebep olabilir. Bu nedenle calismada isletmeler acisindan 3PL servis saglayici seciminde bilgi teknolojileri yeterliliginin onemi ve onceligi incelenmistir. Soz konusu inceleme isletmeler ile yapilan gorusmeler neticesinde elde edilen verilerin, icerik analizi yontemi ile degerlendirilmesi yoluyla yapilmistir. Sonuc olarak 3PL servis saglayicisi seciminde bilgi teknolojileri yeterliliginin onemli bir kriter oldugu tespit edilmistir. Tasima yonetimi planlama ve uygulama, musteri siparis yonetimi, depo / dagitim merkezi yonetimi programlarinin da bilgi teknolojileri arasindaki en gerekli programlar oldugu gorulmustur

The Development of Logistics Services in the United States

This research studies third party logistics (3PL) providers in the United States to investigate how the industry has strategically developed its service offerings in response to the customers’ growing needs in managing global supply chains. Logistics management has significant impacts on various aspects of supply chains such as response time, total supply chain cost, sourcing risk, customer service, security, etc. The results show that 3PL services vary based on industry served, region served, and asset ownership structure. Over the years logistics services providers have served more industry sectors, became asset light, and provided broader services. Two of the five service categories, technology services and special services, have been evolved and expanded rapidly. The development has strengthened the capabilities of the logistics service providers and sustained the growth of the industry.DOI:10.12660/joscmv8n2p23-35URL: http://dx.doi.org/10.12660/joscmv8n2p23-35

Appraisement and benchmarking of third-party logistic service provider by exploration of risk-based approach

AbstractIn the present era, Reverse Logistics Support has monitored as a momentous realm, where stuffs are transferred from point of consumption to origin. The companies who provide the logistic equipments, i.e. Truck, Joseph Cyril Bomford, and Shipment, etc. to its partner’s firms called Third-Party Logistics (3PL) service provider. Today, the feasible 3PL service provider evaluation-opt problem is yet an amorous dilemma. The appraisement and benchmarking of logistics service providers in extent of index; allied risk-based indices and their interrelated metrics; outlooked as a great tool for each international firm, in order that firm could obtain their core goals. The novelty of manuscript is that here, a hairy-based approach has been integrated and then implemented upon a novel developed multi hierarchical third-party logistics (3PL) service providers appraisement index in purpose to umpire the 3PL provider for their strong and ill’s core indices. Moreover, the overall score (Si) system has also been c...

A Study of Business Performance Measurement of Third Party Logistics (3PL) Organizations in the Indian Logistics Industry

The Indian logistics industry is growing rapidly. It is the interchange of infrastructure, technology and new types of service providers that define whether the industry is able to help its customers reduce their logistics costs and provide effective services. Logistics services are the backbone of an economy, providing the efficient, cost effective flow of goods and services on which other commercial sectors are dependent. The logistics companies work as the outsourced or third party service providers (3PL) and support the organizations logistics functions. This study of business performance measurement of 3PL organizations or logistics outsourcing in Indian logistics industry explores the relationship between 3PL service providers and supply chain partners (both upstream and downstream). The researchers have made an attempt to determine the relationship on the basis of the performance variables such as Service Quality (SQ), Organisational Effectiveness (OE) and Relationship Management (RM) and there effect on the performance of the third party service provider(s).

Optimal selection of third-party logistics service providers using quality function deployment and Taguchi loss function

Purpose – Selection of logistics service provider (LSP) (also known as Third-party logistics (3PL) is a critical decision, because logistics affects top and bottom line as well. Companies consider logistics as a cost driver and at the time of LSP selection decision, many important decision criteria’s are left out. 3PL selection is multi-criteria decision-making process. The purpose of this paper is to develop an integrated approach, combining quality function deployment (QFD), and Taguchi loss function (TLF) to select optimal 3PL. Design/methodology/approach – Multiple criteria are derived from the company requirements using house of quality. The 3PL service attributes are developed using QFD and the relative importance of the attributes are assessed. TLFs are used to measure performance of each 3PL on each decision variable. Composite weighted loss scores are used to rank 3PLs. Findings – QFD is a better tool which connects attributes used in a decision problem to decision maker’s requirements. In total, 15 criteria were used and TLF provides performance on these criteria. Practical implications – The proposed model provides a methodology to make informed decision related to 3PL selection. The proposed model may be converted into decision support system. Originality/value – Proposed approach in this paper is a novel approach that connects the 3PL selection problem to practice in terms of identifying criteria’s and provides a single numerical value in terms of Taghui loss.

Third-Party Logistics (3PL) and Supply Chain Performance in the Chinese Market: A Conceptual Framework

Supply chains are becoming more international and sophisticated. With the globalization of businesses, competition between enterprises has evolved to competition between supply chains. The development of third party logistics (3PL) service can help supply chain to achieve cost reduction and shorten lead time simultaneously. For this reason, third party logistics has been integrated into supply chain to enhance supply chain performance. However, we notice that not only is the research on China’s 3PL still in its infancy, but also the role of 3PL in supply chain is not well examined from the Chinese market perspective. The intent of this study is to fill the void by providing a framework addressing how to leverage third-party logistics to improve supply chain performance in the Chinese market. The intended contribution of this study is that we hope our research constitutes a pioneer study that conceptually addresses the relationship between 3PL and supply chain performance, upon which data from the Chinese market can be tested.

A hybrid data analytic methodology for 3PL transportation provider evaluation using fuzzy multi-criteria decision making

Third-party logistics (3PL) service provider selection for a strategic alliance is not an easy decision, and is constantly associated with uncertainty and complexity. For this reason, in this study, a hybrid fuzzy multi-criteria decision-making methodology is proposed to provide a systematic decision support tool for 3PL provider evaluation, especially for 3PL transportation provider. The proposed evaluation methodology consists of several steps. First, the strategic goal and sub-attributes are identified for 3PL service provider evaluation. After constructing the hierarchy, Buckley’s fuzzy-analytical hierarchy process (AHP) extension algorithm is used to determine the evaluation criteria weights. Then, by using fuzzy-AHP results as input weights, the fuzzy-Technique for Order Preference by Similarity to Ideal Solution technique is conducted in order to identify the most suitable third-party providers. Finally, a real-life case study in a confectionary company is presented to demonstrate the potential use of the methodology and a sensitivity analysis is performed to analyse the hybrid methodology proposed here. In the conclusion of the study, future recommendations are presented.

The North American Third-party Logistics Industry in 2013:

Abstract This research is based upon a 2013 survey of the CEOs of 15 of the largest third-party logistics companies serving the North American marketplace. The survey is the 20th iteration of this annual study, and it addresses such topics as the major dynamics operating in that marketplace and the opportunities and problems facing 3PLs in that region. It also addresses such issues as the movement toward near-shoring, 3PL actions with respect to environmental sustainability issues, 3PL services to the healthcare industry, and the industry's chronic problems related to finding and retaining talented managers. The CEOs also provide one- and three-year forecasts of company and regional 3PL industry revenue growth, while identifying the major changes they believe will occur in the regional 3PL industry during the next year. The implications of the data to 3PLs and their customers are discussed.

Supply chain performance measurement for third party logistics

Purpose – The purpose of the paper is to explore the applicability of the Supply Chain Operations Reference (SCOR) model and to identify the key performance indicators (KPIs) for the service-oriented sector – namely a third-party logistics (3PL) service provider. Design/methodology/approach – The performance attributes of SCOR model (reliability, responsiveness, flexibility, cost measures and asset management efficiency) are used as the basis for defining the KPIs. A questionnaire was sent to relevant decision makers. Findings – This paper illustrates the use of the integrated approach of SCOR, fuzzy analytic hierarchy process (FAHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for measuring the supply chain performance (SCP) in the light of a real life case study company. Research limitations/implications – This method forms the basis for performance measurement using the SCOR model to evaluate strategy. In this work, the performance of the company has been compared with its own previous performance. The work can be extended to external benchmarking and also to other sectors. Practical implications – The paper attempts to overcome the conflict between the top-down strategy and bottom-up implementation process. The paper links the strategic objective with operations which would aid managers at different levels of an organization with decision making. The KPIs, when implemented in a business intelligence (BI) tool, would result in real time performance measurement. Originality/value – The paper focusses on 3PLs. It provides a base for measuring the SCP using SCOR model. The paper also identified KPIs for three domains of 3PL, namely freight forwarding, customs and warehousing.