Party Logistics Service Research Articles

The r‐interdiction selective multi‐depot vehicle routing problem

AbstractThe protection of critical facilities has been attracting increasing attention in the past two decades. Critical facilities involve physical assets such as bridges, railways, power plants, hospitals, and transportation hubs among others. In this study we introduce a bilevel optimization problem for the determination of the most critical depots in a vehicle routing context. The problem is modeled as an attacker–defender game (Stackelberg game) from the perspective of an adversary agent (the attacker) who aims to inflict maximum disruption on a routing network. We refer to this problem as the r‐interdiction selective multi‐depot vehicle routing problem (RI‐SMDVRP). The attacker is the decision maker in the upper level problem (ULP) who chooses r depots to interdict with certainty. The defender is the decision maker in the lower level problem (LLP) who optimizes the vehicle routes in the wake of the attack. The defender has to satisfy all customer demand either using the remaining depots or through outsourcing to a third party logistics service provider. The ULP is solved through exhaustive enumeration, which is viable when the cardinality of interdictions does not exceed five among nine depots. For the LLP we implement a tabu search heuristic adapted to the selective multi‐depot VRP. Our results are obtained on a set of RI‐SMDVRP instances synthetically constructed from standard MDVRP test instances.

The role of consumer willingness to pay for halal certification in Pakistan

PurposeThis paper aims to investigate the factors that motivate consumers to pay for halal logistics certification and consequently demand for its certification in Pakistan.Design/methodology/approachThe study used a sample of 302 respondents from the city of Karachi, Pakistan and used partial least square structural equation model. The study used consumers’ perception, concern and personal societal perspective to determine their willingness to pay and the demand of halal certification.FindingsResults revealed that all of the aforementioned variables are significant and positive except perspective usefulness which has insignificant and negative relationship with consumer willingness.Originality/valuePakistan is an Islamic state and people living there are very cautious about the food items they eat and the procedures they follow. Therefore, this study contributes to evaluate such factors that influence consumer willingness to pay for halal logistics in Pakistan. Furthermore, this study suggests policymakers and 3rd party logistics service providers to educate their potential consumers about halal logistics and halal certification.

Drivers Impacting Relationship Quality and Customer Loyalty in Logistics Outsourcing – Pakistan Perspective

By increasing the scope of supply chain management and concept of outsourcing logistics activities of third party logistics services. The relationship quality in supply chain management has began to start the understanding of logistics outsourcing especially in Pakistan. This study covers the gap and investigate the drivers of impacting relationship quality and customer loyalty in logistics outsourcing in Pakistan. In this research used Transaction cost economics (TCE) and resource dependence theory (RDT). Dependent variable of logistics outsourcing are unavailability of alternatives, logistics performance. information sharing, 3pl importance are positively impact on relationship quality and opportunistic behavior providing a negative impact on relationship quality and this relationship quality build the customer loyalty and length of the relationship with the customers. So the impact of relationship quality is positive on the customer loyalty. Managerial implication also observed in this study and gave the positive direction for future.

Outsourcing integration and third party logistics services: An appreciation of two ‘classic’ articles in industrial marketing management

This paper provides an appreciation of two highly cited, ‘classic’ Industrial Marketing Management articles pertaining to outsourcing integration and third party logistics services. The appreciation includes revisiting the general topic themes emanating from both articles, third-party logistics (3PL) service providers, outsourcing and core competence for competitive advantage, relationships, integrating supply chain actors, and combining products and services as a value proposition, with an objective to cast each article's influence on, and ongoing and future contributions to, present day research.

A Study on the Improvement of Competitiveness of Fourth Party Logistics Service in China

A Study on the Improvement of Competitiveness of Fourth Party Logistics Service in China

A Grey DEMATEL Integrated Approach to Determine Third Party Logistics Service Provider Selection Criteria

Üçüncü parti lojistik (3PL) hizmetlerinin, tedarik zinciri yönetiminde temel bir rol oynamasının sonucu olarak son yıllarda kayda değer bir büyüme yaşadığı görülmektedir. 3PL hizmet sağlayıcılarına yönelik talep, şirketlerin müşterine daha iyi hizmetleri sunmaları, maliyetleri düşürmeleri ve rekabet üstünlüğü elde etmeleri gibi avantajlar sağladığı için artış göstermektedir. Bu makalede, 3PL hizmet sağlayıcısı seçimi ve değerlendirilmesi sürecindeki en önemli kriterlerin belirlenmesine yardımcı olacak bir uygulamaya yer verilmiştir. Makalenin amacı, lojistik hizmetlerini zaten dış kaynak kullanan firmaların bakış açısıyla 3PL hizmet sağlayıcılarının seçim kriterlerini ve aralarındaki ilişkileri belirleyebilmektir. Bu amaç doğrultusunda belirsiz ve karmaşık kararları kesin sayısal değerler ile betimleyebilmek ve kriterler arasındaki ilişkileri ve önem düzeylerini tespit edebilmek için gri sistem teorisi ile DEMATEL yaklaşımı bütünleşik olarak ele alınmıştır. Bulgular, kriterler arasındaki karşılıklı ilişkileri ortaya koyarak 3PL hizmet sağlayıcısı seçimindeki en önemli kriterleri ortaya koymuştur. Makale sonuçlarının yöneticilere, 3PL hizmet sağlayıcısı seçim kriterlerinin belirlenmesinde uygulanabilecek bir model önerisiyle yardımcı olacağı düşünülmektedir.

MODELING SUPPLY CONTRACTS TO MANAGE OUTSOURCING RISKS OF LOGISTICS' ACTIVITIES

Many companies managed to improve logistics performance by making outsourcing decisions on logistics activities. The use of logistics outsourcing, not only can maintain their focus on core businesses, but also continue to minimize distribution costs by establishing relationships with third party service providers to create value of their operational performance excellence. But in a decentralized supply chain condition, the control of the supply chain players towards third-party logistics service providers is also limited, while the performance of logistics services affects the availability of products, quality, price, and market share of these companies. Coordination mechanisms are needed in a decentralized supply chain, especially with the implementation of logistics outsourcing decisions, so companies can maintain competitive advantage. In this paper, the model revenue and inventory-risk sharing contract was developed to coordinate the supply chain consisting of manufacturers, third party logistics service providers, and retailers. In addition, incentive and penalty schemes are applied based on the performance of logistics service providers that will affect the level of availability in retailers, so that inventory risk can also be allocated to all stakeholders.

A savings analysis of horizontal collaboration among VMI suppliers

This paper considers a logistics distribution network with multiple suppliers that each replenish a set of retailers having constant demand rates. The underlying optimization problem is the Cyclic Inventory Routing Problem (CIRP), for which a heuristic solution method is developed. Further, horizontal collaboration through a third party Logistics Service Provider (LSP) is considered and the collaborative savings potential is analyzed. A design of experiments is performed to evaluate the impact of some relevant cost and network structure factors on the collaborative savings potential. The results from the design of experiments show that for some factor combinations there is in fact no significant savings potential.

REVENUE SHARING CONTRACT AS COORDINATION MECHANISM WITH THE IMPLEMENTATION OF LOGISTICS OUTSOURCING IN DECENTRALIZED SUPPLY CHAIN

By making logistics outsourcing decision, companies have been able to improve the logistics performance, maintain focus on core business, and minimize distribution cost. However in decentralized condition, there is only limited control of the third party logistics service provider (TPLSP), whose logistics service performance affect the products availability, quality, price, and market share. In this research, a model is developed as coordination mechanisms with the implementation of logistics outsourcing in decentralized supply chain. Revenue sharing contract model is developed in the proposed model to coordinate the supply chain consisting of manufacturers, TPLSPs, and retailers. Moreover the incentive and penalty scheme are implemented in accordance to the supply chain logistics service performance, so the risks and the necessary costs could be allocated to all players. To increase the desirability level of the contracts for all players, the contracts parameters are determined so that all players could obtain higher profit than in a common decentralized supply chain conditions, furthermore the win-win condition can be achieved. This paper provides new model of coordination mechanism in supply chain with logistics outsourcing and offers the incentive and penalty scheme into the basic model of revenue sharing contracts.

An analysis of satisfaction level of 3PL service users with the help of ACSI

PurposeThe purpose of this paper is to evaluate the satisfaction level of customers using third party logistics (3PL) services in the Indian capital region and its surrounding areas. The American Customer Satisfaction Index (ACSI) model is used as a framework to identify the major drivers of satisfaction and areas requiring immediate attention for provision of better services.Design/methodology/approachPresent study includes an exhaustive review of literature for the identification of enablers for this model. Through iterative and structured discussions, variables related to process, service information and user’s expectations are identified, which are subsequently grouped into four dimensions. A survey method is used to get the primary data for this research from 3PL service users’ organizations in the Delhi and adjoining capital region. ACSI is used to prioritize the most preferred driver of satisfaction.FindingsEnablers related to process involving order processing, order picking, order fulfillment and final decision making stand out as the winners and also other critical areas have been identified.Practical implicationsThere is a gap between the services obtained and services expected and information-related complications which lead to unsatisfied customers. The 3PL service providers need to focus on these areas for better business performance and healthy and long-lasting business relationships.Originality/valueThe paper is an attempt to implement a satisfaction model for the 3PL sector from user’s perspective.

Inter-organisational learning in the context of third party logistics services

Inter-organisational learning in the context of third party logistics services

Inter-organisational learning in the context of third party logistics services

In this era of knowledge economy, knowledge can be a differentiator for the firm's business success. In this regard, the third-party logistics provider (3PL) is no exception in that it plays a critical role in funnelling information flows across firms in a supply chain as a logistics integrator. These information flows facilitate inter-organisational learning between the 3PL and its client firm. Organisational learning, however, may vary from operational to strategic decision-making hierarchy, which leads to either competitive parity or competitive advantage, respectively. Taking a dyadic perspective, this paper provides a conceptual framework theorising inter-organisational learning potential between a 3PL and its client firms. Within this framework, it posits that a firm's orientations toward logistics outsourcing and organisational learning together influence its business performance and competitiveness. This paper also develops a series of propositions regarding inter-organisational learning between the 3PL and its multiple client firms that can be a basis for future empirical studies and theory building. Based on these propositions, we may argue that an effective learning strategy of the 3PLs - in a proper combination of the firm's relationship orientation and learning orientation - is a key to the success of logistics outsourcing.

Evaluation and selection of third party logistics services providers using data envelopment analysis: a sustainable approach

Third party logistics service providers (3PLSPs) evaluation and selection for a long-term as well as a strategic partnership is a very crucial and critical task and it is continually associated with uncertain challenges. To remain efficient and competent in the dynamically changing world of 21st century, organisations have reinforced their supply networks by building strategic partnership among both local and international suppliers. Adding to these, there are growing concerns from stakeholder for ensuring implementation of sustainability dimensions. The aim of this paper is to measure and compare the relative efficiency of the existing 3PLSPs based on the technical and sustainable criteria by using a data envelopment analysis (DEA), to find the best among the 3PLSPs portfolios, for the purpose of selection. Finally, a case study in a manufacturing firm is presented to demonstrate the potential use of the model.

Evaluation and selection of third party logistics services providers using data envelopment analysis: a sustainable approach

Third party logistics service providers (3PLSPs) evaluation and selection for a long-term as well as a strategic partnership is a very crucial and critical task and it is continually associated with uncertain challenges. To remain efficient and competent in the dynamically changing world of 21st century, organisations have reinforced their supply networks by building strategic partnership among both local and international suppliers. Adding to these, there are growing concerns from stakeholder for ensuring implementation of sustainability dimensions. The aim of this paper is to measure and compare the relative efficiency of the existing 3PLSPs based on the technical and sustainable criteria by using a data envelopment analysis (DEA), to find the best among the 3PLSPs portfolios, for the purpose of selection. Finally, a case study in a manufacturing firm is presented to demonstrate the potential use of the model.

Selection and evaluation of third party logistics service provider (3PLSP) by using an interpretive ranking process (IRP)

PurposeThe concept of third-party logistics service provider (3PLSP) has been considered as an essential organizational philosophy to achieve profits. The purpose of this paper is to analyze and examine the contextual relationship among the critical success factors (CSF) of 3PLSPs practices in the cement manufacturing industry.Design/methodology/approachIn this paper, the total 20 critical selection criteria with nine processes for the 3PLSPs, of an Indian cement manufacturing industry have been identified through an exhaustive literature review and opinions of the experts i.e. academics and industries. Interpretive ranking process (IRP) methodology has been presented to find out the rankings of the individual criteria and the mutual influence in the selection process.FindingsThe proposed model establishes the dominance of relationship among identified criteria, which plays a vital role in the 3PLSPs selection process which are experience in similar product, quality of management, information technology capacity, flexibility in operation and delivery, compatibility with the users.Research limitations/implicationsAn empirical research approach has not been used to collect primary data to rank different criteria for effective 3PLSPs implementation in the Industry. In this paper, an example of Indian cement industry is presented to show the real world applicability of the proposed model.Originality/valueThis model would help a decision maker to decide the issues related to a selection of 3PLSPs. The third party service provider comprises the use of external companies who controls and delivers logistic activities. The paper discusses very practical issues in an analytical manner, using the case base method.

Drivers of Outsourcing and Selection Criteria of 3rd Party Logistics Service Providers

Drivers of Outsourcing and Selection Criteria of 3rd Party Logistics Service Providers

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%.

Corporate and supply chain network governance of third party logistics service providers: Effects on buyers’ intention to continue the relationship

AbstractThis study focuses on the impact of corporate governance, supply chain network governance and competencies such as sales and logistics competence on buyers’ intention to relationship continuity. A total number of 258 questionnaires were distributed to Turkish manufacturing firms, selected using cross-sectional sampling method from the Istanbul and Edirne Chamber of Commerce and Industry in Turkey. The data of survey was analysed using PLS-SEM model with WARP PLS 5.0 software. Our findings indicate that corporate governance and supply chain network governance seem to have a positive effect on sales competence and logistics competence, and together, they influence buyers’ intention to relationship continuity. In this respect, the outcomes of this study may provide valuable insights for the third-party logistics (3PL) literature in terms of buyers’ intention to relationship continuity.

Do corporate sustainable management activities improve customer satisfaction, word of mouth intention and repurchase intention? Empirical evidence from the shipping industry

PurposeAs the concept of corporate sustainable management activities (CSMA) has become an increasingly important element of corporate management, much attention has been paid to its impact on customer relationship. Although there exists many studies concentrating mainly on the environment aspect of CSMA, only a few address the three dimensions of CSMA (environmental, social and economic) and examine their comprehensive impact on relationship marketing. In an attempt to fill this gap, the purpose of this paper is to empirically investigate the influence of CSMA on customer satisfaction (CS), word of mouth intention (WOMI) and repurchase intention (RI).Design/methodology/approachThe data come from 214 shipping industry practitioners (shippers, freight forwarders and third party logistics service providers in South Korea). Structural equation modeling (SEM) is employed to test the impact of CSMA on CS, WOMI and RI.FindingsBased on a survey conducted in South Korea, the findings indicate that environmental and economic aspects of CSMA play a significant role in enhancing CS and the enhanced CS positively affects WOMI and RI.Research limitations/implicationsAs the field data were obtained from only one industry, future replication of the findings to other industries should consider industry-specific factors, if applicable.Practical implicationsThe results highlight several implications for shipping industry practitioners to consider when establishing the strategy for effective corporate sustainable management to enhance CS.Originality/valueThis study is one of the first empirical attempts to explore how CSMA affects CS in the shipping industry. In addition, this paper empirically investigates the influence of CS on WOMI and RI.

A Study on the Determinants of Third Party Logistics Service Suppliers in Dongdaemun Market

A Study on the Determinants of Third Party Logistics Service Suppliers in Dongdaemun Market