Third-party Logistics Companies Research Articles

효율적 및 반응적 공급사슬 구성 제조기업의 제3자 물류기업 선정요인의 우선순위와 가중치 분석

Using AHP, it is to clearly analyze that there is a difference in the importance and weight of the selection criteria factors that should be applied first in the selection of a third-party logistics company depending on the characteristics of the product and supply chain from the viewpoint of Korean manufacturing companies. For this purpose, previous studies that presented factors for selecting third-party logistics companies were reviewed. As a method of integrating the presented selection criteria, 4 items of ‘logistics service’, 3 items of ‘logistics information (IT) system’, 4 items of ‘logistics price (cost)’, 5 selection criteria of 3 items of ‘Corporate Reputation’ and 6 items of ‘Capacity and Infrastructure’ and 20 application items were selected. And using these contents, a survey was conducted on manufacturing companies.
 Survey results As a questionnaire that can be used for AHP analysis, 51 companies in the efficient supply chain group and 35 companies in the reactive supply chain group were collected. The priority and weight of the selection criteria and application items were determined by performing pairwise comparisons on Tier II selection criteria and Tier III application factors, and calculating overlapping weights.
 The priority and importance of the Tier II selection criteria and the Tier III application factors were confirmed, and the weights for the selection criteria and application items that should be applied preferentially were calculated by synthesizing them. In the efficient supply chain group, the importance of stability, service price, image, cost reduction, accuracy, financial stability, and compatibility was high. In the reactive supply chain group, the importance of stability, accuracy, image, service price, information capability, compatibility, and incentives was high. Through these research results, by reflecting the characteristics of product manufacturing and supply chain, selection criteria and application items that should be applied first when manufacturers select third-party logistics companies are clearly presented.

Exact Method for Production Hub Location

This study proposes a production hub location (PHL) problem that integrates the classical multiplant lot-sizing and hub location problems. The PHL problem is to determine the location of production facilities, lot-sizing, inventory, hub location, and the distribution of multiple commodities from plants to customers, with an objective to minimize the total production, setup, inventory, hub operating, and transportation costs. The PHL problem applies to manufacturing companies that either have built a hub-and-spoke distribution network or are accessible to such a network through collaborations with other third-party logistics companies. Because the PHL problem is [Formula: see text]-hard, we propose an exact method that integrates dynamic programming and Benders decomposition (DPBD) for solving the problem. The DPBD method is enhanced by exploring several problem properties, such as a multicut reformulation, the generation of Pareto-optimal cuts, a two-stage hub elimination and restoration procedure, and the inclusion of a novel heuristic procedure. We compare the PHL model with several related models theoretically and computationally with newly created benchmark instances. The computational results indicate that the proposed model can reduce the total costs and facilitate better network designs and system decisions, highlighting the value of an integrated approach. We also provide managerial insights into the benefits of integration and show the efficiency of the DPBD method through an extensive number of computational tests. History: Accepted by Andrea Lodi, Area Editor for Design and Analysis of Algorithms—Discrete. Supplemental Material: The online supplement is available at https://doi.org/10.1287/ijoc.2023.0339 .

4IR 시대의 식품 콜드체인 3PL 서비스품질과 공급체인 성과에 관한 실증연구

Recently, the cold chain market in the food industry has been rapidly advancing with the application of Fourth Industrial Revolution technologies such as Big Data, IoT, RFID, enhancing both information technology and logistics systems. Consequently, in the support of food cold chain systems, physical quality and logistics information quality have improved during the distribution and logistics processes. Therefore, there is a need for distribution and logistics companies to derive and examine service quality factors that impact relationship maintenance and performance in the supply chain management process with small and medium-sized enterprises (SMEs) in the food industry during the Fourth Industrial Revolution era. This study aims to identify the cold chain service quality factors of third-party logistics (3PL) companies based on expert in-depth interviews and a three-dimensional service quality model. Additionally, it seeks to understand the influence of relationship orientation in Korean food SMEs on supply chain performance. To achieve this, a systematic survey was conducted through preliminary investigations, distributing structured questionnaires, and collecting a total of 240 responses, excluding 9 unreliable responses, for empirical analysis. The collected survey data were analyzed using SPSS version 28.0 for frequency analysis to understand the general characteristics of respondents. Furthermore, Smart PLS version 4.0 was employed to test the internal consistency reliability, concentration, and discriminant validity of the measurement model. After evaluating the structural model, hypotheses were verified. The results of the analysis indicate that all three-dimensional service quality factors of cold chain services provided by 3PL companies (data processing expertise, digital-based customer responsiveness, and smart logistics information accuracy) positively influence relationship orientation. Additionally, the relationship orientation of food SMEs toward 3PL companies was confirmed to have a positive impact on supply chain performance. Therefore, the significance of this study lies in providing service quality factors for distribution and logistics companies to maintain relationships with food SMEs in South Korea and confirming the causal relationships affecting supply chain performance.

An effective two phase heuristic for synchronized seru production scheduling and 3PL transportation problems

This paper concerns with synchronized seru production scheduling and transportation problems, in which seru is a new production mode deriving from Japanese electronic assembly industry. In order to realize fast response in seru production system (SPS) according to the just-in-time principle, the decision of seru production scheduling and transportation is considered synchronously. Without loss of generality, the transportation works are assumed to be in charge by a third-party logistics (3PL) company. The intractability of synchronized seru production scheduling and 3PL transportation problem is confirmed by analyzing the properties, and the upper and lower bounds of makespan are provided along with developing the linear program compress model. Accordingly, an effective two phase heuristic algorithm is designed, in which the first phase uses three moves and two swaps to obtain a locally optimal permutation, and the second phase employs the shortest path algorithm based on 4-opt strategy to form the optimal synchronized schedule. Finally, computational experiments are conducted to demonstrate the efficiency of proposed two phase heuristic algorithm, and empirical observations are also reported.

Redefining “Core Competencies”: Labor Market Intermediation in Outsourced Warehouses

Abstract For nearly a half century, questions of why and how firms navigate the “make-buy” decision have animated fields as varied as industrial relations and economic geography. The idea of “core competencies” became the dominant explanation of corporate decision-making processes, where any activity deemed outside of the central specializations of the firm is a possible candidate for outsourcing. Coupled with the focus on short-term profit taking, corporate leaders have grown increasingly focused on shedding less-profitable activities and shifting supply-chain risk—leading to high levels of lead-firm influence over subcontracting markets and the cost-based competition that permeates them. This paper examines the role of third-party logistics companies (3pl s) in the warehousing sector. It argues that efforts to contain operational costs increasingly are focused on labor and that the ability to access and deploy low-cost labor is among the “core competencies” touted by many 3pl s in the warehousing sector.

Analysis of Third Party Logistic Service in Indonesia

The growth of the business world has encouraged the rapid development of the logistics business. To increase competitiveness, companies focus a lot on their core business in order to fulfill customers' desires and expectations, so the company started using Third Party Logistics (TPL) to increase the company's sustainability. The aim of this research is to find out how TPL services are in Indonesia. The research method used is qualitative research with a descriptive approach. The research results show that of the 8 best TPL companies in 2022, namely Kamadjaja, Agility, Ceva, DB Schenker, Siba Surya, Puninar, Pancaran, and Deliveree, all of them have implemented types of logistics services in the form of transportation, warehousing, custom service, freight finance service, IT Support, product support, and logistics management and all companies are included in the Customer Developer category where the company takes full care of their needs. For further research, the author suggests further research related to development into the next generation of logistics providers.

Sustainability-based enterprise supply chain optimization and response under circular economy approach: agile, adaptive and coordinated

PurposeFrom a supply chain perspective, logistics firms collaborate with other supply chain members to extend their business scope. Investment in circular economy projects in the supply chain can not only broaden the scope of business but also increase the value of the entire supply chain. Third-party logistics companies are gradually participating in the construction and operation of many circular economy projects. How to coordinate multiple circular economy supply chain projects is at the core of its operation.Design/methodology/approachThis paper first analyzes some typical supply chain projects in China and summarizes the main features of these projects. Secondly, considering the benefits of the project and the stakes of each project, a multi-stage stochastic programming model is established. Finally, Cplex, nested decomposition, LocalSolver and other methods are adopted to simulate and analyze the model.FindingsThe final experimental results find that the importance of coordinating multiple circular economy supply chain projects to increase the value of the entire supply chain. The multi-stage stochastic programming model presented in this research can provide a useful tool for logistics enterprises and third-party logistics companies to optimize their investment decisions and maximize their profits in the context of a circular economy.Research limitations/implicationsThere are still some limitations to this study; for example, it is limited to the analysis of circular economy supply chain projects in China. The study focused on third-party logistics companies, and other enterprises in the circular economy supply chain were not considered. The research also assumed that the benefits of each circular economy project and the stakes of each project were known, which may not always be the case in real-world scenarios.Originality/valueThis manuscript found that investing in other circular economy projects in the supply chain can broaden the scope of business and increase the value of the entire supply chain. Third-party logistics companies are gradually participating in the construction and operation of many circular economy projects, such as recycling and repurposing initiatives. It highlights the importance of coordinating multiple circular economy supply chain projects to increase the value of the entire supply chain. The multi-stage stochastic programming model presented in this research can provide a useful tool for logistics enterprises and third-party logistics companies to optimize their investment decisions and maximize their profits in the context of a circular economy.

Warehousing and distribution network design from a third-party logistics (3PL) company perspective

This paper deals with the problem of optimising the network of a Third-Party Logistics (3PL) company, placing emphasis on the distinct characteristics of the 3PL environment. The goal is to minimise the warehousing and distribution costs for both forward and reverse product flows. A new Mixed Integer Linear Program (MILP) model is proposed to address this interesting problem. The related decisions include: selection of (a) warehouse(s) and the related product inventory quantities, (b) product unit loads transported, (c) truck combinations employed to perform the corresponding forward and reverse trips. The model was applied in a case study of a 3PL company to optimise part of its forward supply chain that comprises three warehouses, 23 suppliers and 53 customers. The results obtained were very encouraging, since overall warehousing and distribution costs were lowered by 10.8%. Sensitivity analysis indicated that additional savings may result from optimising warehousing capacities. The main contributions of this work are the inclusiveness of key aspects of the 3PL environment in the proposed model, as well as placing emphasis on warehousing costs and on management of truck capacities. A secondary contribution is the validation of the model’s value through a comprehensive case study.

AN INTEGRATED MODEL APPROACH WITH FUZZY MULTI CRITERIA DECISION MAKING METHODS FOR THE SELECTION OF THIRD PARTY LOGISTICS FIRM IN THE FOOD INDUSTRY

The purpose of this study was to determine third party logistics company selection and evaluation criteria and to help make the most suitable selection among the alternatives in the food sector. Another purpose was to present a mixed model by integrating fuzzy multi criteria decision making methods in third-party logistics company selection process. The combination of fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS methods were used in this study. A decision network was created by evaluating the interactions between the criteria determined depending on the decision goal. This study was conducted in a large scale company producing milk and dairy products in food sector. As a result of the analyses made and the findings obtained, technology, delivery performance and quality were found as the criteria having the highest scores in terms of effectiveness. In addition, it was also determined that the most affected criterion among the criteria was the company image. The S2 Company was selected as the best third-party logistics company as a result of the evaluation of alternatives. The integrated fuzzy methods used in this study were used for the first time in the selection and evaluation of third-party logistics companies. And three new criteria; namely, portage price, hygiene and vehicle were added to the related literature which did not exist before.

Explore The Cost System of Logistics: Taking JD Logistics as An Example

In the process of economic globalization, market competition has become more and more fierce. Countless companies blindly reduce costs to reduce prices to increase their competitive advantage. However, because of their incomplete understanding of the cost system, cost control has been high. Among them, cost control plays a vital role in enterprise management. In the process of rapid development, logistics enterprises face external competitive pressure and their cost control system constraints. To fully cope with the fierce competition of the times, logistics companies must learn to control costs and improve enterprise management. This paper uses a case study method and combines data analysis methods to discuss JD.com’s self-operated logistics cost system. It is compared with the systems of third-party logistics companies, such as SF Express, through comparative analysis. This article analyzes and compares the leasing costs, vehicle depreciation and replacement costs, fuel costs, investment costs, and insurance costs of JD Logistics, puts forward some of their problems, and finally gives some reasonable suggestions.

A two-stage business analytics approach to perform behavioural and geographic customer segmentation using e-commerce delivery data

ABSTRACT Customer segmentation is considered the cornerstone for personalisation, target advertising, and promotion assisting both researchers and practitioners to enhance customers’ buying behaviour understanding. Pertinent literature mainly exploits one distinct segmentation type such as behavioural to segment customers solely under one lens. We develop a two-stage business analytics approach that introduces a combination of geographic and behavioural customer segmentation. Our approach is based on data mining and machine learning techniques. We evaluate the suggested approach using e-commerce home delivery data. First, we segment customers based on the products ordered to identify behavioural customer segments with similar product preferences. Then, we perform geographic segmentation. By applying the approach developed we also identify challenges that affect the segmentation process and results. The suggested approach can serve as a guide to business analysts to understand which are the steps that they should perform when analysing similar datasets. Whereas its results may assist third-party logistics (3PL) companies, retailers, and brands in supporting decision making.

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.

Logistics Coordination Based on Inventory Management and Transportation Planning by Third-Party Logistics (3PL)

Currently, there is still a strong trend in research and in the market connected with the role of 3PL (third-party logistics) companies and the trend of developing and creating coordination in logistics networks. The most important issue for the following paper is the examination of the 3PL enterprise, which is able to create the demand forecasts to gain the functions of logistics coordination in the fields of inventory management and transportation planning. This research paper focuses on showing the demand forecasting tool results for 29 chosen distribution networks (in this paper, the traditional forecasting methods were used based on time series exponential smoothing, ARIMA, machine learning and neural-network-based methods, created in the R programming environment). In the next steps, the forecasting results were compared in the conditions of transportation planning and inventory management (in the conditions of “future” dynamic ABC analysis). The forecasting function supports the inventory management and transportation planning activity of 3PL as a key element of logistics coordination in distribution networks. The proper way to transfer the results of forecasting to an ABC analysis and transportation planning concept is to create a cloud-based system supported by data from the WMS (warehouse management system), while providing the possibility of results visualization by using some BI (business intelligence) solutions or different tools to create managerial information dashboards. Currently, one of the most efficient models connected with logistics coordination is the centralized network with 3PL responsible for planning and executing logistics processes with the creation of additional value. As such, 3PL is able to create a similar forecast for different types of DN and with different aggregations (per SKU or per recipient). It could support coordination in DN from the point of view of inventory management and transportation planning.

Warehousing and distribution network design from a Third-Party Logistics (3PL) company perspective

This paper deals with the problem of optimizing the logistics network of a Third-Party Logistics (3PL) company. The goal is to minimize the cost of storage and transport operations, in the case of multiple warehouses, multiple suppliers, multiple customers, multiple products and multiple types of transportation vehicles. A new Mixed Integer Linear Program (MILP) model is proposed for this interesting problem. The related decisions include selection of (a) the warehouse(s) to store each product, (b) the inventory level per product per warehouse, (c) the warehouse(s) to serve each customer and (d) the appropriate vehicles to transport the products from the suppliers to the warehouses, and from the latter to the final customers. The model was applied in case study of a 3PL company in Greece to optimize part of its supply chain that comprises three warehouses, 23 suppliers and 53 customers. The results obtained were very encouraging, since overall warehousing and distribution costs were lowered by 10.84% compared to the way the company operates currently.

How to Use Advanced Fleet Management System to Promote Energy Saving in Transportation: A Survey of Drivers’ Awareness of Fuel-Saving Factors

Despite the broad application of advanced fleet management systems (FMSs) in third-party logistics (3PL) companies, there is a marginally limited understanding of how to employ them to enhance transport energy efficiency. In a case study of a Chinese 3PL company, this paper analyzed data obtained from the online FMS to assess drivers’ awareness of fuel-saving factors. A questionnaire was primarily designed to investigate the drivers’ awareness of fuel-saving factors based on the reliability and validity test. Then, Extreme Gradient Boosting (XGBoost), a machine learning algorithm, was utilized to explore the intrinsic impacts of various factors on fuel consumption with the outputs providing the evaluation basis for individual awareness of the drivers. The results show a significant deviation in the driver’s awareness of fuel-saving factors, among which the three indicators of engine speed, idling condition, and rolling without engine load are seriously underestimated, while the indicators related to the environment are seriously overestimated due to social expectations. In addition, the average speed was found to be the most important fuel-saving indicator besides the load. Based on these findings, this paper recommends that the 3PL companies choose a route with more freeways when planning, and the mileage should be controlled within 800 km as far as possible.

Time slot management in selective pickup and delivery problem with mixed time windows

The selective pickup and delivery problem addresses real-life issues in logistics and transportation. The aim is to optimally select some pickup locations to collect the required demands and unload commodities at delivery locations. Everyday, much of such logistics processes are outsourced to Third-Party Logistics (3PL) companies. However, decentrally truck scheduling by 3PLs specifically when there are only a limited number of warehouse loading docks and time slots will likely cause the random arrival of carriers at warehouses, capacity violation at loading docks, and consequently increased total costs. This study offers a promising approach to optimize the intricate problem of coordination in transportation logistics. We present an integrated time slot allocation and selective pickup and delivery problem while taking real-world variants and constraints, including mixed time windows and capacity, into consideration. To achieve this, we propose a mixed-integer linear programming formulation for the problem. To solve the model, we utilize some valid inequalities and constraints tightening method to strengthen its linear programming relaxation. In addition, a sensitivity analysis is performed on different problem features to validate the presented model. Computational results illustrate the effectiveness of the presented model and valid inequalities in providing faster and tighter results. With respect to the solution time and the number of nodes, the average of both measures drastically is reduced by approximately 90%, followed by tight lower bounds. Furthermore, the value of the integrated model is investigated on larger-sized instances, which shows the proposed model can achieve significant savings and gains compared to the decomposed subproblems of vehicle routing and time slot allocation.

Product pricing problem in green and non-green multi-channel supply chains under government intervention and in the presence of third-party logistics companies

Over the past decades, the significant adverse effects of economic and industrial human activities on the environment have led to the introduction of sustainability and sustainable development concepts. Based on the principles of sustainable development, in a decision/production process, managers and policymakers should not only have economic concerns but also consider social and environmental issues. In this regard, local and national governments have been convinced to intervene in supply chains mostly by imposing subsidies and/or taxes to make their activities more sustainable. Accordingly, designing sustainable supply chains has turned into a critical issue for both managers and researchers in different industries. Transportation and distribution represent two of the most unsustainable steps in any supply chain; cooperation with Third-Party Logistics (3PL) companies could help to make these steps sustainable. The main purpose of this study is to investigate the issue of sustainable supply chain management under the presence of the government and through the application of an outsourcing strategy to a 3PL company in the transportation sector. The problem is studied according to different formats of competition, decision-making, number of players, and public awareness. Considering different decision structures, the game theory is applied to model the problem and obtain the equilibrium values. Finally, a sensitivity analysis is conducted on each model, and some numerical examples are solved to show how applicable the models are. The results show that cooperation with 3PLs in a supply chain enhances the public awareness about environmental issues and promotes the sustainability of the supply chain. Governmental tariffs can also serve as practical tools to push supply chains towards sustainable strategies.

An algorithmic approach for sustainable and collaborative logistics: A case study in Greece

City logistics have always been significant for companies, since they constitute the last-mile distribution of goods to consumers and retailers. Since the needs of consumers have increased in recent years, the exacerbation of traffic congestion, noise, and pollution in city centers has emerged. Therefore, logistics companies need to implement strategies to maintain their efficiency and accuracy, while simultaneously supporting green logistics. This paper describes a sustainable approach where logistics companies collaborate, by sharing fleet and resources, in the routing and scheduling operations. To estimate the improvements, in terms of pollution and cost reduction, the case where companies operate independently, is compared to the collaborative case. The data exploited in the research, originated from the daily distribution cases, faced by Third-Party Logistics companies in Greece. These daily cases are addressed by a heuristic algorithm, either individually, for studying the way they operate today, or jointly, for determining the collaborative case's advantages.

An inquiry on knowledge management in third-party logistics companies

This paper aims to explore the perception towards the importance of internal knowledge for business activities that can be associated with knowledge management (KM) and the application of tools to aid KM from a managerial perspective. A qualitative research approach was adopted by conducting in-depth case studies in three third-party logistics (3PLs) companies located in central Malaysia, offering most of logistics services and serving a large number of clients. This study employed first cycle, second cycle and in vivo coding as the data analysis techniques. Generally, this study provides insight about KM awareness, practices and obstacles in 3PLs companies in Malaysia. The findings of this study have significant implications for both academicians and the 3PLs organisations to further explore the theories, practices and the implementation of KM in similar organisations. Future studies may want to investigate the tools and technology that can help to support the KM practices among 3PLs organisations.

The dual-channel green supply chain performance under government monitoring: A Game theoretic approach

Nowadays, consumers tend to use more green and healthy products. Consumer awareness of environmental issues increases today. Declining natural resources, rising disease rates, and rising global temperatures due to industry-wide pollution have raised public concerns. The supply chain, as an important issue and involved with these problems, has always attracted the attention of researchers. A two-channel supply chain is considered in this study. The supply chain consists of one green producer and two retailers along with a Third-party Logistics Company (TPL). The government is also considered as the leader of the structure. The results show that the strategy adopted by the government has a major effect on other members’ decision of the supply chain and can therefore increase/decrease pollution. On the other hand, cooperating with a TPL companies also reduces environmental pollution, despite raising costs. The obtained results emphasize that by growing the value of subsidies allocated to the producer, the government can reduce the amount of pollution in the SC. Moreover, increasing the amount of subsidy will lead to an increase in the degree of product greenness. Also, increasing the degree of the greenness of the product does not always increase the profitability of SC members.