Party Logistics Service Providers Research Articles

Evaluation of Technology-Based Sustainable Practices in Logistics Service Providers by Content Analysis and SWARA Method

Purpose: The purpose of this study is to evaluate the potential of sustainability-related activities of Fourth Party Logistics (4PL) service providers and their technologically based solutions. Methodology: It aims to evaluate alternative approaches and measure the relative importance of the technology solutions preferred by 4PL service providers within the context of sustainability efforts, first by content analysis and then by using SWARA method, in order to assess the technologically based solutions and sustainability potentials of 4PL service providers. Findings: The information on the websites was therefore assembled in light of the data obtained, and a situation assessment was made. In the context of this study, it has been found that "Data-Driven Decision Making" possesses the highest level of significance among technology-based sustainable practices. “Vehicle Tracking Systems Technology”, on the other hand, has been ranked as having the least amount of significance. Originality: This research evaluates digital sustainable activities on 4PL enterprises, in contrast to earlier studies. We can therefore learn more about how contemporary technology and sustainable practices converge in the logistics sector by examining the effects of digital sustainable activities on 4PL enterprises.

Decision-making and sub-coordination in a newsvendor model with a third party logistics service provider

Decision-making and sub-coordination in a newsvendor model with a third party logistics service provider

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

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

Sourcing third party logistics service providers based on environmental, social and corporate governance: a case study

The acronym ESG, environmental, social and governance, emerges as a strong trend in the era of the circular economy and stands out as a need for companies to respond to the segment in which they operate. Although most studies have been done in the past, they did not address ESG criteria to ensure operator exemption for logistics providers. Further research on the application of realistic circular economy techniques is recommended. Therefore, strategic sourcing, based on multicriteria decision analysis (MDA), considering parameters such as economic, technical, and environmental factors, has created a perfect methodology that considers all these essential requirements, revealing an excellent way to outsource logistics service providers (LSPs). The article aims to prove MDA’s effectiveness awarding the best LSP through predefined dimensions involving human resources, risk management, environmental and other social aspects, indicating dedication and commitment to social environmental issues and corporate governance during a procurement’s strategic sourcing in a Brazilian pharmaceutical company process. A Literature review supported by a real case study where a multifunctional team from Pharmaceutical and Consultants proved the objective was valid. A secondary objective was demonstrated on how current sustainability challenges can be overcome by the organization and generate value for its stakeholders and society, showing responsibility and commitment to environmental, social, and corporate governance issues. After reviewing all the concepts involved using the literature review, the results were achieved indicating that sourcing process’ case study through MDA validated the effectiveness choosing the 3PL with the best results in ESG. The article deals with a current, relevant, and not very explored topic and may contribute to enhancing the investments of logistics service providers (LSPs) in ESG, mainly those that weren’t awarded at end of the project.

Sustainability of Supply Chain Performance Through Inventory and Collaboration Management: A Case of Transportation Fuel Companies in Harare, Zimbabwe

The study was based on the theory of constraints which acknowledges that bottlenecks are systemic, unavoidable, and affect the performance of the organisational supply chain processes. In the study, poor inventory and collaboration management were identified as bottlenecks in the transportation fuel retail sector. Thus, identifying the indicators of poor fuel supply chain performance can assist the industry in achieving a sustainable performance. In the descriptive design, the researchers distributed objective questionnaires among fuel industry supply chain staff whose roles include inventory and collaboration management decisions which are strategic to supply chain performance. The respondents gave their views on the effect of selected inventory and collaboration management indicators on supply chain performance. The analysed results indicate that there is a positive relationship between both inventory and collaboration management and the fuel supply chain performance. These findings led to the conclusion that, achieving supply chain performance goals of profitability, customer satisfaction, internal process effectiveness and company growth requires management to implement inventory and collaboration management strategies. Therefore, fuel industry supply chain stakeholders including government, fuel companies, fuel suppliers, customers and third party logistics service providers need to cooperate and work together to pull the struggling fuel industry from the doldrums.

Decision-making and sub-coordination in a newsvendor model with a third party logistics service provider

Decision-making and sub-coordination in a newsvendor model with a third party logistics service provider

Enhancing supply chain information sharing with third party logistics service providers

PurposeThis study evaluated the enhancement of information sharing practices with third party logistics service providers (3PLs) in a supply chain solutions company that provides transport and warehousing software in Johannesburg, South Africa.Design/methodology/approachA mixed methods case study was conducted to investigate the problem. Both strands of quantitative and qualitative data were given equal priority. Three rounds of primary data were sequentially collected, analysed and triangulated. An online questionnaire was distributed to a sampling frame of seventeen companies which were randomly selected from the population. Three company executives were purposively sampled to participate in a focus group interview. Data from an open-ended questionnaire were used to explain and validate the findings from clients and executives who participated in the two preceding rounds of data collection.FindingsIt was found that information sharing improves the collaboration of channel members, increases competitive advantage and ultimately leads to better customer service. The improvement of relationships and continuous technological upgrades are recommended for improving visibility of information and effectiveness in the management of supply chains.Research limitations/implicationsThis study is limited by the characteristics of the case study methodology. Case study research suffers from restricted generalisability, problems with cross-checking and the risk of bias and subjectivity. This implies that the results of this case study may not be generalised to the overall population. The selection of a mixed methods design was intended to curb the limitations that are inherent to this study.Practical implicationsThis study was limited to a few respondents and participants, which raises concerns about both the statistical power and the generalisability of the results. However, the results provide useful insights into some of the information sharing practices in the industry.Originality/valueThe value of the study contributes to the supply chain's dependence on 3PLs for value creation and the reliance on technology to share information amongst channel members. This study highlights a need for organisations to build collaborative relationships with 3PLs and continuously update technological infrastructure in order to meet supply chain network goals.

Third-Party Logistics (3PL) Provider Selection Using Hybrid Model of SWARA and WASPAS

Increasing competition as a result of globalization forces companies to focus on the core activities they are specialized in and to use outsourcing in areas other than these core activities. Companies seek to outsource their logistics functions partially or completely since this is not in their main field of activity. Thus, companies are faced with the problem of choosing a Third Party Logistics (3PL) service provider that can contribute to their sustainable development and perfectly perform the logistics activities. In this study, the 3PL selection problem of a cable manufacturing company is discussed. The study aims to solve the business problem and to show the applicability of Multi-Criteria Decision-Making (MCDM) methods in the most appropriate 3PL selection problems. The 3PL selection was made in line with the criteria and alternatives determined by a team of decision-makers working in the relevant department of the company. First of all, the weight value of each criterion was determined by using the SWARA method based on the MCDM method. This method was chosen because it takes group decisions into account and is easy to implement. Afterward, calculations were made according to the criteria levels of each alternative service provider with the WASPAS method. In the study, 12 criteria were determined by the decision-makers. Besides, 5 different 3PL companies were taken into account. According to the results of the study, it was the third 3PL that met the criteria at the most appropriate level.

Does service quality influence operational and financial performance of third party logistics service providers? A mixed multi criteria decision making -text mining-based investigation

Since its inception, the third party logistics (3PL) industry has remained an area of interest for academicians and practitioners. The existing literature mostly focuses on single multi criteria decision making (MCDM) method-based holistic performance evaluations of 3PL service providers, whereas distinct operational and financial performance measurements have not received enough attention. Several real-life examples of organizations, such as Hub Group and DSV, indicate that the reliance on financial performance improvement solely does not ensure better operational performance and integrated performance, and vice versa. Additionally, there is an absence of works that focus on designing an integrated MCDM methodology that applies multiple MCDM methods to increase the robustness of the methodology and consider distinct operational, financial, and integrated performance measurements of the 3PL service providers. Additionally, the application of emerging ratio analysis-based MCDM methods such as multi objective optimization based on ratio analysis (MOORA) and complex proportional assessment (COPRA) for performance evaluation has been ignored. Furthermore, the assessment of the service quality of 3PL service providers through their customers’ feedback and the association of this service quality with the abovementioned performance measures have not received enough attention. This motivates us to design a criteria importance through intercriteria correlation (CRITIC) weighting-based integrated MOORA-COPRA MCDM methodology for the performance evaluation of 3PL service providers. We apply our proposed methodology to evaluate the performance of 21 leading 3PL service providers in North America. Additionally, we incorporate text mining methods such as sentiment analysis and topic modeling to analyze the effect of these service providers’ service quality captured through their customers’ reviews on distinct operational, financial, and integrated performance. The insights obtained from the study indicate that service quality (as captured from the consumer reviews) has a positive association with the operational and financial performance of 3PL service providers.

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.

A Study On Perception Of Freight Forwarders Towards Third Party Logistics With Reference To Everon Impex

Outsourcing of logistics function is a business dynamics of growing importance all over the world. A growing awareness that competitive advantage comes from the delivery process as much as from the product has been instrumental in upgrading logistics from its traditional backroom function to a strategic boardroom function. In order to handle its logistics activities effectively and efficiently, a company may consider the following options – it can provide the function in-house by making the service, or it can own logistics subsidiaries through setting up or buying a logistics firm, or it can outsource the function and buy the service. Currently, there has been a growing interest in the third option, i.e. outsourcing of logistics functions to third party logistics service providers. The main objectives of the study is to know the perception of employees towards third party logistics. For this purpose a sample of 75 was collected from the respondents and the respondents are those who are employees working with various companies. Based on the findings it is concluded that though the usage of 3PL services reveals positive and significant impact on business performance, third party logistics practices are still at a nascent stage with the companies.Organizations will increase the usage of 3PL services in traditional logistics activities and increase the scope of outsourcing based on the overall satisfaction and the impact on business objectives – logistics system performance, customer satisfaction and employee morale.

Reviews and Propose Model for the System Dynamics in Contemporary Tendencies of Third-Party Logistics towards Business Performance in Malaysia and Thailand

The present Third Party Logistics (3PL) service providers in Malaysia and Thailand are expending their effectiveness and efficiency in several spheres from contemporary logistics services offers towards the series of value-added services to their customers. There is a need to forecast their key performance indicators growth using a systematic approach in resource management, as their quality indicators. Hence, this paper discovers on the current propensities of 3PLs service providers in respect of issues connected with their performance, resources and quality to establish on the 3PLs indicators of resources, quality and processes. It is also sought to develop a model of systematic dynamics for internal resources and company processes optimization based on the best practices. The methodology of the research is based on literature reviews which focusing on the performance measurement, quality and resources of 3PL. Using a System Dynamics, a model of optimization and management of 3PL, the internal processes and resources were developed. This model comprises of Nine (9) segmentations, which are operations, commercial activities, administration, personnel management, procurement, quality management, Resources, Performance Measurement and Financial models. The model is indicating all areas of activities of 3PL service providers. This study proposes a new model for Third-party Logistics (3PL) performance indicators for future guidelines in related industry.

PENGENDALIAN KUALITAS PADA PROSES PENERIMAAN BARANG UNTUK MENURUNKAN DEFECT PRODUCT DENGAN PENDEKATAN SIX SIGMA

The industrial revolution 4.0 has an impact on the progress of a global business, including in Indonesia. One of the companies affected is the Logistics Company. In this research, a logistics company is a company engaged in warehousing and logistics services or 3PL (third party logistics service providers). Based on the research results, it is known that there are five types of products with the highest number of defects in the last six months, namely ER180, IA195, IA120, SL235 and IA220 products. From the Pareto diagram, it is known that the ER180 product is the product that has the highest defect percentage among other products, namely as much as 52%. The processing results obtained an average DPMO value of 185.68538 failures per one million and a sigma level of about 5.06 with a COPQ level of 5-15%. Based on data analysis using Failure Mode and Effect Analysis, there are six types of product defects, namely dented packaging, damaged outer cartons, leaking products, rotten products, inappropriate product dimensions and plain packaging. The main causes of product defects are MHE operators who are not careful, the use of damaged wooden pallets and the lack of lighting in the work area. Based on the analysis using FTA and FMEA, the proposed quality improvement for the company, namely conducting training and training so that employee knowledge and skills increase, selection of pallets according to standards and adding lighting in the work area.

WeIghtIng the factors affectıng logıstıcs outsourcıng

Today, growing and changing competitive conditions, products, and services, free movement of labor, and businesses with the information they develop strategies that create value to obtain a competitive advantage. Now, final buyers have the convenience of purchasing the products they demand with the features and conditions they want and at the price they accept. In such an environment, businesses use their supply chain and logistics activities more effectively and efficiently than their competitors. Today, achieving a strategic superiority in a global market where the content and quality of the products are the same is only possible by delivering the desired products to the customer at the desired price, at the desired time, in the desired amount, through the right channel, as quickly as possible and without any damage. In such a situation, the desire to focus on the main activities of the enterprises, the need for effective logistics operations, etc. logistics outsourcing has increased rapidly for reasons. Businesses can carry out logistics activities requiring expertise thanks to third party logistics (3PL) service providers in the field such as transportation, storage, customs clearance, without investing in logistics. For logistics outsourcing to be beneficial, a correct logistics service provider must be selected under the needs of the business. Selecting the right logistics service provider is important in increasing the benefit of outsourcing. In this study neutrosophic AHP was used to prioritize the factors.

The impact of environmental regulation on environmental performance: A focus on third party logistics service providers in an emerging country

The literature addresses the link between command and control environmental regulation and environmental performance. However, there is a lack of attention paid to how environmental strategy plays a mediating role in this relationship. In addition, the environmental research in the context of third-party logistics service providers seems to be underexplored. Thus, through the theoretical lens of institutional theory and contingency theory, this study examines the mediating role of environmental strategy on the relationship command and control environmental regulation and environmental performance. Data were collected from small and medium enterprises operating in the logistics industry of Vietnam and partial least square structural equation modeling was employed to examine the proposed hypotheses. The result indicates the full mediating effects of environmental strategy on the link between command and control environmental regulation and environmental performance. In this regard, this study contributes to growing empirical evidence showing that the link between environmental regulation and environmental performance is indirect through mediators. Besides, this study also extends the current knowledge of environmental strategy pursued by third-party logistics providers.

MEASURING LOGISTICS PERFORMANCE FOR COMPETITIVENESS- A CASE STUDY OF AUTOMOTIVE CONNECTION SYSTEMS COMPANY, KERALA, INDIA

A company having implemented a logistics system must continually monitor and evaluate its effectiveness. Similarly, a company may utilize several different methods to measure logistics performance. This study was conducted at Automotive System Connections Ltd., in Kerala, India. This company’s warehouse handles 720 traded parts out of which 96% comes from intercompany basis and the remaining 4 % of items comes from their local suppliers located in India. It was found that the company moves 98% of traded parts by road / surface transportation mode and the remaining only by air cargo mode. These parts are supplied to original equipment manufacturers in India. So, logistics performance measurement was considered an important area for this research. Twelve important metrics were selected for measurements and three years data collected from their main information report (MIR), returns, and reports followed by interview method with senior executives of the company. This company is in the process of implementing lean approach in their warehouse operations. This company should more focus on some of the metrics like inventory turnover ratio, overall customer satisfaction, total logistics cost, and capacity of warehouse vs space utilization. This company should focus on Full Truck Load (FTL) rather than Less Truck Load (LTL) by consolidation and collaboration with Third Party Logistics Service providers (3PL). This company should also change incoterm to Freight on Board (FOB) / Free along Ship side (FAS) from Ex-Works.

Logistics service outsourcing choices in a retailer-led supply chain

Motivated by the practice, we investigate logistics service outsourcing choices in a retailer-led supply chain where the retailer offers logistics service by itself or outsources it to a third party logistics service provider. Results show that offering logistics service by the retailer is not always the optimal choice although it alleviates the double marginalization effect. Regarding the value of cost-sharing contracts in such a supply chain, we find that a variable cost sharing contract benefits the retailer but hurts the logistics service provider. When a part of fixed cost is shared by the retailer, a win–win outcome will be achieved.

An Analysis of Service Failures and Recovery Strategies in the Turkish Third Party Logistics Service Industry

Service literature indicates that both service failure and service recovery have a strong impact on the business relationships between service providers and their customers. The purpose of this research is twofold: to explore and analyze the most common service failures and implemented recovery strategies in Turkish third party logistics service industry and examine their impact on business relationships. Critical Incident Technique (CIT) was used. Thus, information on critical incidents were collected from both third party logistics service providers (3PLs) and their customers, failures and recovery strategies were categorized and the impact of service failures and recovery strategies on future relationships between customers and 3PLs examined. The findings indicate that service failures are most frequently encountered in customer services and port operations and that symbolic service recovery is the most common recovery strategy implemented by third party logistics service providers. The findings also show that third party logistics service providers and carriers are the most common sources of failure in third party logistics services.

Routing vehicles through cross-docking facility for third party logistics service providers

This study focuses on a specialised vehicle routing problem (VRP) to transport matchboxes from manufacturing companies to retailers through a cross-dock (cross-docking facility) operated by a third party logistics service provider. Three processes (unloading, consolidating, and loading) are carried out at a cross-dock for completely avoiding or keeping inventory for a very short time. The specialised VRP, addressed in this paper, consists of multiple suppliers (each supplier can produce different brands of products for any number of customers) and multiple customers (each customer can receive orders from any number of suppliers). A mixed integer linear programming model has been developed to solve this kind of NP-hard problem. The objective of this model is to minimise total cost incurred in picking up and transporting the matchboxes from the manufacturers to cross-dock, consolidating matchboxes at cross-dock, and in transporting and delivering the matchboxes to the customers. This study also proposes an effective heuristic procedure to solve the same problem and compares the solution obtained using the heuristic procedure to the optimal solution obtained using the exact method. The findings show that the heuristic method, proposed by us, generates near optimum solutions using significantly less computational time than the exact method.

Routing vehicles through cross-docking facility for third party logistics service providers

Routing vehicles through cross-docking facility for third party logistics service providers