Party Logistics Providers Research Articles

The Role of Korean Food Delivery Apps as a Third-Party Logistics Provider: Focusing on Self-Determination Theory

Purpose: This study aim to examines the relationships between users' self-determination motivation, perceived utili-ty and hedonic values, attitudes, and intentions to reuse the app. Additionally, the moderating effect of information search effort was explored. Design/methodology/approach: Data were collected via online surveys targeting domestic consumers using K-FDA services. We used PLS-SEM for hypothesis testing. Findings: The results suggest that K-FDA users perceive more value as they use the app with greater voluntary motivation, leading to higher attitudes and intentions to reuse the services. Additionally, hedonic value interacted with information search effort level to significantly influence attitude, indicating the need to encourage users to use K-FDA services more proactively. Research limitations/implications: According to self-determination theory, an individual's autonomy can be dis-tinguished into various stages ranging. Differences in perceived value and behaviors during the K-FDA usage process may emerge according to these stages. Therefore, it is suggested that future research conduct studies comparing differences by refining the degree of self-determination. Originality/value: Despite the increasing distribution costs as Korean Food Delivery Apps (K -FDA) serve as third- party logistics providers, the number of K-FDA users is on the rise. In this context, there is a need to investigate users' motives and the values perceived during the use of the app to attract and retain users. Therefore, we adopted the Self-Determination Theory to examine the effects of intrinsic motivation on the perceived value (utilitarian and hedonic) during the app usage process and proposed the role of K-FDA in attracting users to the app and encouraging reuse in the fiercely competitive delivery app market.

Fermatean fuzzy Z-analytic hierarchy process: An application to third party logistics providers

To decrease the impact of ambiguity, fuzzy sets are frequently used to decide if an element belongs to a set. Various fuzzy set extensions differ from others in how uncertainty is expressed in the definition of membership functions. This paper presents a novel extension named Fermatean fuzzy Z-numbers, introducing fuzzy restriction and fuzzy reliability functions with Fermatean fuzzy membership functions. By utilizing fuzzy Z-numbers to delineate membership degrees, considering both restriction and its reliability, in tandem with Fermatean membership functions offering an expanded value spectrum, the assessment of linguistic evaluations using Fermatean fuzzy Z-numbers can yield more pragmatic outcomes in decision evaluations amidst high uncertainty. Moreover, the interval-valued Fermatean fuzzy-Z-analytic hierarchy process is developed to explore the impact of proposed interval-valued Fermatean fuzzy-Z numbers on the multi-criteria decision-making process, demonstrated in the context of third-party logistics provider selection. Adding fuzzy reliability functions to the decision-making process improves how uncertainty is represented by considering variations in confidence levels associated with each decision, thus aiding in the clearer expression of decisions. Additionally, the proposed method's outcomes are compared with the outcomes of the current approaches.

Modelling of 3rd Party Logistics Provider Using Unified Modelling Language

Modelling of 3rd Party Logistics Provider Using Unified Modelling Language

데이터 애널리틱스를 활용한 컨테이너 적재 문제 해결

Purpose This paper proposes a data analytics approach that effective solves a container loading problem. The problem is to decide how much products must be loaded on a container that is delivered by a third party logistics (3PL) providers. The main difficulty in the problem is due to government regulation on the total gross weight. It regulates the maximum gross weight but 3PL’s trucks have random weights. Methods This paper develops an efficient data analytics method that efficiently incorporates the randomness of truck weight using an empirical distribution of historical data. Results Using detailed shipping data from a real company, this paper provides numerical results that reveal that the proposed analytics method provides a significant cost reduction. Conclusion Considering the fact that many manufacturing companies are subject to a similar logistics practice, the data analytics method studied in this paper can be applied in diverse industries.

К надежности выбора аутсорсинговой компании на рынке транспортно-логистических услуг

The article considers the reliability criteria when choosing a supplier of transport and logistics services. There has been conducted analysis of modern scientific literature by Russian and foreign authors, studied the statistical reports of transport and logistics companies. Two main problems in the activities of transport and logistics service providers are highlighted: the impact of transport and logistics outsourcing on vulnerability of the supply chain and the achievement of acceptable financial performance. It has been inferred that choosing the transport and logistics services supplier is a complex multi-criteria task including the use of both quantitative and qualitative criteria for decision-making. At the same time, when using different methods, the conclusions may contradict each other. Choosing the right third party logistics (3PL) provider logistics managers may not be sure that their choice will meet the needs of the company. Therefore, the decision to use a third-party logistics service provider depends on many factors that may vary from company to company, with the final choice depending on future goals, product lines, company plans, expansion, etc. Factors indicating success in choosing an outsourcing company include: cost reduction, maximum on-time delivery, minimum order lead time, increase in the number of alternative solutions, increase the efficiency of logistics activities, reduce logistics management costs, improve customer relationships and create mutually beneficial relationships in the supply chain. The criteria for selecting third-party transport and logistics companies are given (in descending order): price, reliability, location, timeliness of the order, cost reduction, management flexibility and innovation, quality of management, quality of service, personalized service, reputation of the supplier, technical competence, good communication, variety of services available.

Response to COVID-19 lockdowns from urban freight stakeholders: An analysis from three surveys in 2020 in France, and policy implications

The global COVID-19 pandemic has led to the implementation of health measures of varying degrees and scales. The lockdowns that took place in 2020, especially, have had a major impact on cities, transforming urban lifestyles, economic activities and mobility. Logistics became a priority activity. Faced with changed levels and types of consumption, freight and logistics operators in cities had to adapt, while logistics real estate developers had to face challenges related to building sites closed and regulatory and licensing processes delayed. Our main research in this paper is to characterize the way the urban freight and logistics system coped with the new situation. We focused on French cities, with Paris and the Paris metropolitan area as the main case. We implemented three surveys during and after the first lockdown in France (March–May 2020), with the views of identifying challenges while characterizing stakeholders’ response to the challenges. The three surveys took different and complementary forms, covering various categories of stakeholders: freight carriers (from small to large); third party logistics providers; on-demand delivery platforms; policy-makers; and logistics real-estate developers. We found out that operators adapted quickly and overall successfully, one major difference being between delivery operators and property developers. The first group experienced higher levels of financial and economic challenges; the second group experienced difficult relationships with administrations and regulations, while enjoying a rather high level of activity. The ability of local governments to deal with urban logistics challenges during the lockdowns was diverse and took several unexpected forms.

Random Serial Dictatorship for horizontal collaboration in logistics

In this paper, we propose the application of matching mechanisms to handle horizontal collaboration in logistics. Based on the requirements of a real-life setting, we introduce a new variation of matching under preferences. We provide a Random Serial Dictatorship (RSD) mechanism for finding a solution that incorporates Pareto optimality, incentive compatibility and fairness, which are desired properties for enabling collaboration between antagonistic participants. Further, we present an extensive experimental analysis that is twofold. We compare the proposed RSD mechanism to two well-known matching mechanisms, namely Maximising Cardinal Utilities (MAXCU) and Bundled Probabilistic Serial (BPS). We compare these mechanisms with respect to cardinal efficiency and envy, and highlight the complementarity between them for handling different settings. Most importantly, we show that RSD is the most appropriate choice for settings similar to the one motivating our study. Moreover, we examine the effect of randomisation of RSD to fairness. Finally, we discuss how our matching mechanism was applied in the real-life context of four 3rd Party Logistics providers. Results show that the proposed approach creates significant potential for synergies and may be used to support horizontal collaboration in logistics.

Managing reputational risk during supply chain disruption recovery: A triadic logistics outsourcing perspective

Background: The coronavirus disease 2019 (COVID-19) pandemic has opened the world’s eyes to the impact that supply chain disruptions have on our society. Supply chain disruptions can result in various long-term effects, of which reputational risk is one of the biggest. A good reputation can create value for all stakeholders of a firm, however it can also expose a firm to risk. Reputational risk has been extensively studied in supply chain management; however, the management of reputational risk during supply chain disruption recovery (SCDR) has been neglected. Objective: This study explores reputational risk management during SCDR, between a logistics triad consisting of third party logistics providers (3PLs), their upstream suppliers and downstream customers within a South African context. Method: A generic qualitative design was employed to collect data from five logistics triads using semi-structured interviews. Results: The study found that reputational risk has a predominantly positive influence on the SCDR process. Furthermore, the study expands on existing literature by identifying additional approaches to manage corporate reputation during SCDR not evident in literature. These approaches include the use of control centres and involvement of the key account manager. Conclusion: This study creates awareness for the importance of reputational risk during SCDR and also provides managers with valuable insight into how reputational risk should be managed during SCDR.

Impact of Predicting Disruptive Events in Supply Planning for Enterprise Resilience

For several years, companies have been aware of the importance of supply planning, but extreme events like pandemics and the financial crisis have shifted the attention towards planning for resilience. To be resilient, companies need to be prepared and to become adaptative and reactive in the presence of disruptive events. Combining the capacity of Third Party Logistics providers (3PLs) with the company's supply capacity can help them achieve these components of resilience. Moreover, the planning process should allow for modeling the effects of disruptive events or, even better, allow for predicting these events. This work aims to create awareness of the importance of disruptive event modeling and prediction as essential components of the supply and demand planning processes in the quest for resilience. We present an optimization model that allows for flexible supply planning, generating scenarios with mixed capacity combinations (internal and outsourced) to minimize supply costs. This model can help quantify the impact of disruptive events on the demand pattern; we present a scenario where an unexpected significant rise in the demand for a month occurs and generates stockouts and related costs due to the lack of resilience. Future research will complement this model with predictive capabilities.

Sustainable cost reductions obtained by using a fourth party logistics provider

Background: In a rapidly changing global business environment, the outsourcing of logistics activities to fourth party logistics (4PL) service providers is growing in popularity as a strategy for efficiency and customer service improvements. However, there are very few empirical studies on logistics outsourcing performance. In addition, there is a lack of information on the effectiveness of a 4PL model, especially from a South African perspective. Objectives: The main purpose of this study was to determine if the use of a 4PL model to manage the courier distribution for a major retailer in South Africa was able to achieve ongoing cost savings for the client. Method: This research entails a case study of a large non-food retailer in South Africa. Secondary quantitative distribution cost data covering a 10-year period was analysed, using a time series method. The findings were verified through semi-structured interviews of key personnel involved in the implementation and management of the outsourcing contract. Results: The outsourcing of courier distribution management resulted in the targeted cost savings for the client organisation to be exceeded. Cost savings were consistent over a 10-year period. Conclusion: The findings of this study supports the theory that the outsourcing of logistics functions can result in sustainable cost savings for clients if done properly. It adds to the limited body of independent evidence that exists on the matter of sustainable results obtained from 4PL outsourcing agreements.

Sustainable–responsive winner determination for transportation service procurement auctions under accidental disruptions

This paper investigates a new winner determination problem with sustainable and responsive concerns under disruption risks for transportation service procurement auctions. In such an auction, a fourth party logistics (4PL) provider purchases transportation services from multiple third party logistics (3PL) providers. We develop a two-stage stochastic mixed-integer programming model that incorporates two features, including (i) a sustainable–responsive constraint to quantitatively describe the sustainability and responsiveness performance, and (ii) an effective hybrid mitigation strategy that combines the fortification policy with the temporary outsourcing service policy to mitigate disruptions. To determine winning 3PLs, a reduced scenario-based approximation approach is developed to solve the model and obtain a nearly optimal solution very quickly. Numerical experiments are conducted to illustrate the effectiveness and applicability of our model and method by using randomly generated instances as well as real data of a Chinese 4PL firm. Compared with existing studies, sensitivity analysis indicates that our proposed model can significantly reduce the 4PL’s expected cost and improve the long-term competitive advantages. Managerial implications are also drawn for 4PLs to run a sustainable–responsive logistics system under disruptions in a cost-effective way.

Proactive environmental strategy and performances of third party logistics providers (TPLs): Investigating the role of eco-control systems

This study investigates the role of eco-control systems in translating the proactive environmental strategies (PES) of third party logistics providers (TPLs) into economic and environmental performances using variance-based structural equation modelling, popularly known as PLS-SEM. Analysis of survey data from 232 French TPLs indicate that improved performance depends on the type of TPL organizational core that is mobilized by the PES. Indeed, while the PES of the operations function can improve both environmental and economic performances, the PES of the marketing function contributes only to improved economic performance. The results also reveal that eco-control systems play a prominent role in fostering TPL environmental performance while economic performance remains unchanged. In this regard, eco-control systems can help TPL managers deploy their strategic environmental intentions and achieve improved environmental performance by motivating and directing employees along environmental purposes, providing key information related to environmental activities, and prompting opportunity-seeking behaviors. Overall, the study answers recent calls for research on the green initiatives of TPLs and provides novel insights that can spur on further research.

Supply chain network design considering customer psychological behavior-a 4PL perspective

From the perspective of Fourth Party Logistics, a novel supply chain network design problem considering customer psychological behavior is proposed in this paper. First, we calculate the minimum cost of the supply chain network design in Fourth Party Logistics when the demand of customers is fully satisfied. In the shortage of investment in the process of supply chain network design, the demand of customers can be partially satisfied. Then, customer psychological behavior is considered to maximize the value function of customer satisfaction under cost constraint. After introducing the definitions of the psychological reference point and the service level for customers based on the prospect theory, we formulate a non-linear integer programming model for Fourth Party Logistics network design problem. Since the objective function of the proposed model is non-linear, an approximation linearization method is introduced to adjust the proposed model to be an equivalent linear model. Numerical experiments are designed to justify the effectiveness of the proposed method. Through a thorough analysis on customer psychological behavior, it can be seen that customers tend to be more risk-averse for gains than risk-seeking for losses in Fourth Party Logistics supply chain network design. Moreover, valuable investment insights are recapitulated. This proposed method provides an effective tool for a Fourth Party Logistics provider to give reasonable suggestions to an investor in Fourth Party Logistics supply chain network design. Furthermore, we extend the basic model of 4PL supply chain network design considering customer satisfaction with multiple commodities and provid a solution method based on greedy adding heuristic to further reduce the calculation time for large scale cases.

The DEMATEL–COPRAS hybrid method under probabilistic linguistic environment and its application in Third Party Logistics provider selection

With the emergence of outsourcing logistics and the rapid development of the e-commerce business, Third Party Logistics (TPL) plays an indispensable role in modern business. In the TPL provider selection process, uncertain information brings more challenges to decision makers. This paper uses probabilistic linguistic term sets (PLTSs) to describe uncertain decision making information. Firstly, we propose an improved Decision Making Trial and Evaluation Laboratory method, which allows a certain relationship between decision criteria and calculates criteria weights in multi-criteria decision making (MCDM) problems. Then, in order to make full use of uncertain TPL provider information and maximize the values of data, the probabilistic linguistic complex proportional assessment method is proposed and applied to solve the MCDM problems under probabilistic linguistic environment, which needs much less computation than other MCDM methods. Finally, an application example of TPL provider selection is presented to demonstrate the proposed method. A comparative analysis is further conducted to validate the effectiveness of the proposed method.

Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions

A smooth operation of the fourth party logistics supply chain network requires the cooperation of multiple distribution centers and third party logistics. Any unexpected disruption caused by a certain distribution center may lead to serious consequences to the whole fourth party logistics supply chain. Therefore, we study the reliable fourth party logistics location-routing problem in the network design considering disruption risk of distribution centers. In addition, to minimize the total cost of the proposed problem, a scenario-based integer programming model is established to locate distribution centers, to select proper third party logistic providers, and to accomplish the vehicle routing from distribution centers to customers. Then, a two-level heuristic framework is proposed to handle this NP-hard problem through dividing the original problem into two sub-problems. One is the reliable fourth party logistics location assignment problem, and the other is the fourth party logistics vehicle routing problem. These two sub-problems can be independently solved and iteratively composed to get to the solution of the original problem. Furthermore, numerical experiments are designed, and the effectiveness of the heuristic framework is tested by comparing the quality of solutions and running time with those calculated by using CPLEX. Managerial insights are also provided based on the calculation results.

A MCDM Approach to Third Party Logistics (3PL) Provider Selection

A MCDM Approach to Third Party Logistics (3PL) Provider Selection

A green lateral collaborative problem under different transportation strategies and profit allocation methods

Abstract Collaboration between companies in transportation problems seeks to reduce empty running of vehicles and to increase the use of vehicles’ capacity. Motivated by a case study in the food supply chain, this paper examines a lateral collaboration between a leading retailer (LR), a third party logistics provider (3 PL) and different producers. Three collaborative strategies may be implemented simultaneously, namely pickup-delivery, collection and cross-docking. The collaborative pickup-delivery allows an entity to serve customers of another in the backhaul trips of the vehicles. The collaborative collection allows loads to be picked up at the producers in the backhauling routes of the LR and the 3 PL, instead of the traditional outsourcing. The collaborative cross-docking allows the producers to cross-dock their cargo at the depot of another entity, which is then consolidated and shipped with other loads, either in linehaul or backhaul routes. The collaborative problem is formulated with three different objective functions: minimizing total operational costs, minimizing total fuel consumption and minimizing operational and CO 2 emissions costs. The synergy value of collaborative solutions is assessed in terms of costs and environmental impact. Three proportional allocation methods from the literature are used to distribute the collaborative gains among the entities, and their limitations and capabilities to attend fairness criteria are analyzed. Collaboration is able to reduce the global fuel consumption in 26% and the global operational costs in 28%, independently of the objective function used to model the problem. The collaborative pickup-delivery strategy outperforms the other two in the majority of instances under different objectives and parameter settings. The collaborative collection is favoured when the ordering loads from producers increase. The collaborative cross-docking tends to be implemented when the producers are located close to the depot of the 3 PL.

Selecting green third party logistics providers for a loss-averse fourth party logistics provider in a multiattribute reverse auction

Existing winner determination models tend to overlook the sustainable attributes of third party logistics (3PL) providers. This paper investigates a novel green winner determination problem that has several features, including (i) the sustainable attributes with conflicting and interactive properties of potential 3PLs, and (ii) the loss-averse behavior with an internal reference point of a fourth party logistics (4PL) provider. For the attributes with a combination of crisp data, interval numbers and intuitionistic 2-tuple linguistic terms, we integrate the prospect theory (PT) and Choquet integral with the “benefits, opportunities, costs and risks (BOCR)” framework to propose a novel PTC-BOCR solution method. Numerical experiments are conducted to illustrate the effectiveness and applicability of PTC-BOCR by comparing it with some known methods. Comparison analysis indicates that PTC-BOCR is robust with respect to the variance of 3PLs’ attribute values, while behavioral parameter analysis reveals that the loss-averse behavior of the 4PL is intensified as the difference of 3PLs varies. Managerial insights are also drawn for green 3PLs to win the auction. This study is a significant extension of traditional decision-making methods, which could benefit the realization of a sustainable logistics system in a cost-effective way for 4PLs.

Influence of Supply Risk Assessment of Third Party Logistics Providers on Performance of Humanitarian Supply Chains: A Case of International Red Cross, Somalia

The logistics service industry has evolved quickly to deliver a variety of services including frequently outsourced warehousing, logistics, and freight forwarding, as well as value-added services which include; order management and fulfillment as well as consultancy in the supply chain. The current study sought to establish the influence of supply risk assessment on the performance of humanitarian supply chains in Somalia with a keen focus on the International Red Cross. The study used a descriptive research design. 102 ICR employees operating in Somalia were the target population. The research adopted a technique of census while using a questionnaire to gather primary data. To guarantee validity and reliability, the questionnaire was pre-tested. Using descriptive and inferential statistics data was analyzed and displayed in tables. Key findings of the study included IRC had developed better dispute resolution mechanisms arising from their strategic partnership with their 3PL providers, the organization had enhanced its procurement processes due to its effective assessment of 3PL providers' capacities resulting in minimal supply risk exposure. From correlation analysis, it was established that there existed a strong and positive correlation between supply risk assessment of 3PL Providers and the performance of the ICR supply chain (r = 0.708**, p=.000). The study concluded that for enhanced performance of the supply chain 3PL providers should deliver requisitions on time and at desired locations as per orders. It is expected the study findings will find use among logistic practitioners and researchers.

A two-stage stochastic winner determination model integrating a hybrid mitigation strategy for transportation service procurement auctions

Disruption is one of the important and challenging factors in transportation service procurement auctions. Existing winner determination models tend to ignore bidders’ disruption risks and its dire consequences. This paper particularly studies a revised winner determination problem with disruption risks of bidders for a fourth party logistics (4PL) provider to purchase transportation services via combinatorial reverse auctions. Integrating a hybrid mitigation strategy that includes fortification, reservation and outside option policies to deal with disruptions, a new two-stage stochastic winner determination model is constructed. Based on the characteristics of the deterministic equivalent reformulation, a scenario-based approximation approach is developed as solution method. An upper bound can be obtained by using a scenario reduction approach, and a lower bound can be derived by employing a problem-based relaxation method or an efficient dual decomposition Lagrangian relaxation approach. Numerical experiments are conducted to illustrate the effectiveness and applicability of the proposed model and method, since the gap between the upper bound and lower bound is small. Comparison analysis indicates that our strategy is better than some known strategies, and would have a more significant influence on cost minimization of the 4PL as the probability of disruption becomes higher. Managerial implications are drawn for 4PLs to provide high quality of transportation services under disruptions.