Third-party Logistics Service Research Articles

Selection of third-party logistics in supply chain finance under probabilistic complex hesitant fuzzy sets and distance measures

Financial institutions attach great importance to the multiple attribute decision-making (MADM) problems of selecting an effective third-party logistics (3PL) service provider in supply chain finance. A suitable 3PL service provider can not only assist financial institutions in carrying out supply chain finance activity but can also replace financial institutions in supervising the operation of a target financing supply chain, therefore minimizing financial institutions' operating risks. However, there is no sufficient study on the selection of a 3PL service provider. Hence, the objective of this paper is to establish an innovative concept of the “probabilistic complex hesitant fuzzy set” (PCHFS), which is a hybrid structure of the complex hesitant fuzzy set and the probabilistic fuzzy set to manage complex information in real-decision theory. This paper examines the periodicity of probabilistic fuzzy information and extends the range from [0,1] to the unit disc in the complex plane to provide more ability to describe the full meaning of the information in a mathematical model. Based on the internal structure of the set and to find the degree of discrimination between the pairs of PCHFSs, the generalized distance measures and modified generalized distance measures are defined. Several properties and their relationships between them are derived in detail. Also, several cases of the proposed measures are exposed, which reduces them to the existing studies. Furthermore, based on these proposed measures, a multiple-attribute decision-making (MADM) approach is established in an uncertain environment, and several numerical examples are given to examine the feasibility and validity of the explored measures. Finally, the modified and parameterized distance measures based on PCHFSs are verified by comparing them with some existing measures.

Criteria for selecting third-party logistics service providers: Systematic Literature Review

Third-party logistics (3PL) is a strategic business partner for companies in carrying out company business activities that are outsourced or cannot be handled themselves. Mistakes in choosing a 3PL can have negative impacts on the company such as financial losses, reducing service quality, reducing customer trust, reducing the company's image, and so on. This article aims to classify third-party logistics based on current issue trends, the methods used in selecting criteria, and what criteria they produce. Using Systematic Literature Review, researchers reviewed, classified, and analyzed 56 relevant articles published in the 2020-2023 period from the Scopus database. The results of this review reveal that 3PL providers can be classified based on issue trends and company goals in selecting them, namely Traditional 3PL, Sustainable 3PL, Sustainable-resilient 3PL, Green 3PL, Gresilient 3PL, Traditional Third-Party Reverse Logistics, and Sustainable Third-Party Reverse Logistics. The priority criteria in selecting a 3PL provider are closely related to the 3PL classification, the industrial sector and business activity being outsourced, the country where the company operates, and the dimensions or attributes used in developing the criteria.

The Improvement of Logistics Management in China: A Study of the Risk Perspective

This paper identifies and empirically validates the potential risks in overseas third-party logistics services that support sustainable cross-border e-commerce logistics in China. This research addresses a significant gap in the current literature by conducting a comprehensive literature review and case study, primarily focusing on third-party logistics services’ benefits without adequately discussing the associated risks. Our study highlights the medium and high risks in forwarding and contracting processes, such as cost uncertainty, quality issues, and cultural and language differences. The findings contribute to academic research and practical applications by providing a theoretical foundation and practical guidance for enhancing logistics management in China’s sustainable cross-border e-commerce. This research promotes the resilience and sustainability of cross-border e-commerce supply chains and offers valuable insights for overseas 3PL service providers looking to expand their operations in China.

Group decision making method for third-party logistics management: An interval rough cloud optimization model

Group decision making in third-party logistics service selection plays an essential role for improving service quality, increasing efficiency and reducing the net cost. Fuzzy and uncertain linguistic variables are commonly used to represent experts‘rankings in optimization problems. To recognize the limits of human cognition and subjectivity of human evaluations, several optimization approaches have been studied to select remanufacturing alternatives in decision making processes, however these methods have certain deficiencies such as lacking manipulation tools of diverse information, randomness, use of predefined parameters increasing uncertainty, interpersonal relations among evaluation criteria. The integration of interval numbers, rough approximations, and cloud model theory plays a significant role to model incomplete and inadequate information occurring in decision making problems. This research paper focuses on the integration of dual interval rough integrated cloud model with best-worst optimization technique, Multi-Attributive Border Approximation area Comparison (MABAC) and Weighted Aggregated Sum Product Assessment (WASPAS) approaches. A novel min–max optimization model based dual interval rough integrated cloud values is designed to compute the weight coefficients and consistency ratio for each criteria. The consistency of proposed optimization model is checked using a consistency ratio test. Secondly, the alternatives are ranked using the proposed DIRI cloud based MABAC and WASPAS approaches using interval clouds based weighted sum and weighted product coefficients, approximation area values and distance formulae. The significance of the proposed model is highlighted with a case study of third-party logistics service management of an electronic firm. The rationality and out-performance of the proposed methodology is studied by a comparative analysis with existing approaches and detailed sensitivity analysis on different variations of criteria weights and parameter.

A systematic literature review of logistics services outsourcing

Logistics is critical in every company's supply chain (SC), and outsourcing helps businesses concentrate on their core competencies. Third-party logistics (3 PL) or logistics service providers (LSPs) assist businesses in cutting costs while improving performance, sustainability, and revenue. Logistics evaluation and LSPs choice are complicated and critical components of value delivery. This study aims to review logistics outsourcing literature to understand the trends, prospects, factors, and strategies used in logistics companies' outsourcing choices. This work examines the literature on LSPs selection published between 2010 and 2023. This paper uses VOSviewer (version 1.6.19) to visualize the relationships. Pricing, timely shipment, service quality, reliability, agility, technology, and consumer feedback are the most commonly utilized, whereas societal and environmental factors are seldom used. The study comprises journal publications, the year, selection criteria, and assessment methodologies. Numerous scholars have discovered and employed many critical selection criteria. Many investigators have also embraced multi-criteria decision-making (MCDM) methodologies, and their fuzzy form is widely used. In conclusion, recommendations for theorists and managers, limits, and future directions for research are offered.

Examining Public Sector Availability and Supply Chain Management Practices for Malaria Commodities: Findings From Northern Nigeria.

Nigeria accounts for substantial proportions of global malaria infections and deaths, with children aged younger than 5 years being the most affected group. This suggests that access to lifesaving malaria interventions could be suboptimal, especially at public health facilities where most rural dwellers seek health care. We conducted this study to ascertain if public health facilities have the commodities and the robust supply chain management (SCM) system required to deliver malaria interventions to children younger than 5 years. We conducted a cross-sectional survey in 1,858 health facilities across 7 states in Nigeria. Using structured questionnaires, we assessed the availability of selected malaria commodities required by children aged younger than 5 years. We also interviewed health workers to evaluate other core SCM activities. More than 50% of health facilities in 5 states were stocked out of malaria rapid diagnostic tests (mRDTs), and stock-out rates for artemisinin-based combination therapies (ACTs) were over 50% for almost all assessed ACTs across all states. The percentage of health facilities that received malaria commodities within the recommended lead time was below average across most states (71%). States with a higher percentage of health workers who were aware of and placed orders following the national reporting timeline and those that delivered commodities to the last mile predominantly through third-party logistics service providers tended to have higher availability of mRDTs and artemether/lumefantrine combinations. The top 2 logistics challenges were insecurity and inadequate funding. The availability of lifesaving malaria commodities across the health facilities visited was suboptimal, possibly due to several SCM challenges. The results from this study underscore the urgent need to implement effective interventions to address the observed gaps. This will contribute to reducing malaria morbidity and mortality among children aged younger than 5 years in Nigeria.

Research on Member Decision-making of Dual-channel Supply Chain with TPL Participation

With the development of the Internet, more and more enterprises choose the dual-channel supply chain for the sale of goods, in which the third-party logistics service provider plays an important role. By adopting the modified hotelling model, this paper constructs a three-level two-channel supply chain model, discusses the influence of centralized and decentralized decision-making on the decision-making of supply chain members, and puts forward corresponding management suggestions.

The impact of resource sharing on the design of multi-client warehouses

Third-party logistics (3PL) services are essential in many supply chains and aim at providing flexible and cost-effective transport and warehouse solutions. This study focuses on Warehouse Service Providers (WSPs) with shared, multi-client warehouses. We investigate how the main internal resources should be shared among clients. We focus on labor (order pickers and sorters) and pick storage space (zones) as the main internal resources in the order picking process in such a warehouse. We evaluate different possible resource-sharing configurations and develop a model to find the configuration that can satisfy set service-level agreements at minimum cost. The cost consists of labor and space cost, whereas the service-level requirements are based on the mean and tail of the order-throughput-time distribution. The results show that whether to share the resources or not highly depends on the clients’ characteristics, such as the order demand rate. Generally, for low-demand clients, sharing all the resources is optimal, whereas for high-demand clients, dedicating all resources is preferred. In addition, the decision to share resources depends on the warehouse’s characteristics, similarities between clients’ product and order picking characteristics. The findings of this article provide valuable insights for WSPs to minimize cost, while meeting the service-level requirements of clients by optimally selecting the warehouse configuration. This may, in turn, benefit their clients by offering better pricing policies to them, which can also be a compelling selling point, ultimately contributing to business growth and attracting more clients.

Freshness-keeping effort vs. sustainability: an efficient approach for perishable supply chain system

Last few decades, unwanted climate change and global warming have forced us to think about the world environment. This paper investigates a perishable supply chain system consisting of one manufacturer, one third-party logistics service provider, and multiple retailers. The logistics provider and retailers use cooling technologies to maintain the product's freshness. Here, consumers' demand is evaluated from the utility function based on price, freshness, and sustainability level. The environmental impacts of the system are measured from the amount of energy consumption and carbon emission. Also, the supply chain members are taking their decisions in cooperation, non-cooperation, and coordination decision scenarios to maximise their profit and reduce total environmental impacts. We develop a general model and a particular model under different decision scenarios. The optimal sustainability level, price, and freshness-keeping-effort (FKE) are derived using the Stackelberg game theory. A numerical experiment as well as sensitivity analyses of various important parameters are conducted. It explores that (i) FKEs have more impact than the sustainability level for the consumption of perishable products. (ii) The retailer-leadership scenario is the most effective for reducing carbon emissions and energy consumption whereas the cooperative decision scenario is better for maintaining the freshness level.

Coordinating principal-agent and incentive strategy of cold chain logistics service in fresh food supply chain.

With the increasing production and circulation of fresh food, society's requirements for product quality have also increased. Currently, upstream and downstream enterprises in the fresh food supply chain tend to delegate the cold chain transportation of fresh food to third-party cold chain logistics (CCL) service providers who offer more professional integrated preservation services. This study adopts coordination theory to research the delegation, coordination, and incentive strategies between a Fresh Food Producer, Distributor, and CCL Service Provider. The aim is to promote the efforts of the CCL Service Provider in improving freshness and achieving the overall optimal interests of the fresh food supply chain. First, the basic models of the Fresh Food Producer and Distributor individually entrusting the CCL Service Provider are established under different information conditions. Second, a collaborative delegation agency model between the Fresh Food Producer and Distributor is established on top of the basic models. Finally, through the optimal decision solutions under different information conditions and numerical calculations of preservation benefit levels, the following conclusions are drawn: (1) The more transparent and open the information environment, the more it can encourage the CCL Service Provider to improve the quality of their preservation services, allowing the Fresh Food Producer and Distributor to obtain more significant preservation benefits. However, when information is completely transparent, the incentive mechanisms formulated by the Fresh Food Producer and Distributor become ineffective. (2) Collaborative cooperation strategies can encourage the CCL Service Provider to enhance their preservation efforts while strengthening the effectiveness of relevant incentive strategies for the Fresh Food Producer and Distributor.

Automatic model generation for material flow simulations of Third-Party Logistics

AbstractThe use of Third-Party Logistics (TPL) is a common practice among manufacturing companies seeking to increase profitability. However, the tender process in selecting a TPL service provider can be challenging, requiring significant effort from both the tendering company and the service provider. The latter must meticulously plan processes and calculate pricing positions while running the risk of losing the bid. This risk impedes verifying logistical feasibility and comparing different logistic concepts extensively, such as layouts, which are often work-intensive. With the ongoing progress of research toward automatic simulation model generation for material flow, it is left to answer whether such approaches can improve the planning processes of TPL service providers by using planning data to generate simulation models. Therefore, this work presents a system with an underlying ontology to generate material flow simulations by developing a model transformation methodology. The system’s functions are tested to determine whether they can support the planning process using defined case studies that cover everyday planning decisions. As a result, the system is capable of verifying the performance of planned logistic systems with minimal manual modelling efforts. This encompasses the evaluation of alternative logistical concepts for configuring the planned systems.

Evaluation of third-party logistics service providers for car manufacturing firms using a novel integrated grey LOPCOW-PSI-MACONT model

Automotive businesses often delegate logistical tasks to third-party logistics (3PLs) service providers to acquire a competitive edge in the dynamic market. Nevertheless, selecting the most suitable third-party logistics (3PL) partner is a multifaceted undertaking that needs careful evaluation of several criteria and alternatives. This research aims to introduce an integrated grey Multiple Criteria Decision Making (MCDM) framework for automotive businesses to deal with the multidimensional 3PL selection decision problem. This framework incorporates an enhanced Preference Selection Index (PSI), Logarithmic Percentage Change-driven Objective Weighting (LOPCOW), and Mixed Aggregation by Comprehensive Normalization Technique (MACONT). The LOPCOW-G and grey PSI (PSI-G) methods extract the criterion weights, whereas the MACONT-G method ranks the alternatives. The suggested framework's practicality is shown by conducting a case study about evaluating and selecting a third-party logistics (3PLs) provider. The findings indicate that the parameters of significant importance are “skilled workforce (0.0977),” “financial strength (0.0901),” and “IT-IS competence (0.0839).” Furthermore, TPL4 has been recognized as the most optimum option with a value of 0.4797. The MACONT-G model is as well compared against other grey MCDM techniques to assess the validity of the proposed model. The Pearson correlation coefficient between MACONT-G and the other models based on grey sets is 0.958, suggesting a significant and positive link. Furthermore, it is worth noting that a sensitivity analysis has been conducted to validate the accuracy and reliability of the created framework. In conclusion, this study has identified managerial and policy implications that might assist policymakers and executives in effectively evaluating 3PL providers.

Development and Practical Application of Hybrid Decision-Making Model for Selection of Third-Party Logistics Service Providers

Abstract In this study a problematic of logistics service provider selection is discussed. Traditional decision-making techniques are functionally limited and must be adjusted. Modern approach must be based on contemporary tools and information. The aim of this study is to develop a modern, industry-oriented decision-making model for selection of strategic logistics service providers. Main tasks of this study include: to perform critical analysis and comparison of multiple-criteria decision-making methods; to adapt decision-making framework for specific needs of selection of third-party logistics service providers; to collect and analyze industry data related to procurement projects; to develop modern decision-making model for selection of logistics service providers; to perform practical application of developed decision-making model based on collected industry data. The key novelties of this study are developed methodology for collection of industry data for decision-making process, developed hybrid decision-making model for selection of third-party logistics service provider, as well as application of the model. As the result, there is developed decision-making model for selection of 3PL service providers that includes 6 steps.

Orgatma – the 3PL challenge

Learning outcomes This case study would help students in understanding the dynamics of logistics and logistics vendor roles and contributions to overall business operations. The case study covers real-time information for applying the theoretical knowledge students gain related to the selection of logistics vendor. It would help students to understand and evaluate the dynamics of a new start-up related to cost, profits and dependency; understand and analyze the importance of third-party logistics (3PL) service providers in the supply chain; become aware of the key performance indicators (KPIs) important in the selection of logistics vendor; and develop and create measures for selecting logistics vendors on the basis of KPIs. Case overview/synopsis This case study was about an innovative start-up operating in the field of organic edible oils. The company catered to end consumers with its indigenous technology and processes. The innovative and healthy products were appreciated by the consumers, as was reflected in the surging demand figures. With the increasing popularity of organic products, the orders were surging. At the same time, issues such as damaged product delivery, increased cost per delivery of small packages and failure to deliver because of unserved pin codes by their logistics partners were being faced by the company. The case discusses the dilemma faced by the protagonist regarding the selection of the right 3PL partner. The case study is suitable for teaching courses in operations and logistics, supply chain management and entrepreneurship-related courses. Complexity academic level This case study is appropriate for postgraduate courses in entrepreneurship, operations management, logistics and supply chain management and general management. Supplementary materials Teaching notes are available for educators only. Subject code CSS9: Operations and logistics.

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.

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

Dynamic modelling of cold chain logistics services under budget constraints for the delivery of fresh products in an urban area

The quality of perishable products declines continuously during the transportation process, rendering the delivery of a product with good freshness a challenging task in urban areas. We investigate how to plan activities to preserve the freshness level of products within a specific distance range. To this end, we construct an analytical model consisting of an online retailer and a third-party logistics service provider that loads the product from the retailer's fulfillment center and delivers it to various destinations with cold-chain logistics operations. The retailer seeks an appropriate balance between the delivery of good freshness, the farthest distance of delivery, and a limited budget for cold-chain logistics. We derive the optimal size of the area in which the freshness of products is maintained to the maximum possible level and the farthest distance that the retailer should consider when fulfilling online orders. This study includes three scenarios: in-house operation, outsourcing, and a hybrid mode. In outsourcing, the retailer pays a service fee based on the number of orders fulfilled within a specific area. The primary finding is that the retailer can choose an appropriate combination of the service fee rate and budget to control the scale of the area that guarantees good freshness. This finding has managerial significance, in that the ability to accurately predict and control the freshness by the distance range can reduce the occurrence of customers complaining about the quality of the delivered products.

Logistics collaboration in vehicle manufacturing: case studies with a triadic perspective

ABSTRACT This paper discusses logistics collaboration applied to a vehicle-manufacturing setting. We reach out to a larger segment of the supply chain by employing a novel unit of analysis, a logistics triad. The triad encompasses an Original Equipment Manufacturer, a Third-Party Logistics Service Provider, and first-tier suppliers. We use the framework known as Collaborative Transportation Management (CTM) to study collaborative transportation activities, focusing on the important relationship between logistics collaboration and logistics performance. Using a qualitative research orientation and a multi-case research strategy, we interviewed logistics practitioners in three countries to identify the enablers of CTM, the salient collaborative practices, and the performance outcomes. The study uncovers the extent to which CTM contributes to the operational and relational performance of the logistics triad. We provide empirical evidence of an ad hoc implementation of this notion. We propose avenues of intervention to preserve logistics collaboration and to enhance logistics performance.

Freshness-Keeping Strategy of Logistics Service Providers: The Role of the Interaction between Blockchain and Overconfidence

As a result of the increasing scrutiny of fresh products, greengrocers are now forced to concern themselves with the deterioration of their products’ freshness and employ blockchain technology as a tracing system. However, in the logistics system, the third-party logistics service provider (LSP) is motivated to be overconfident in order to extract extra profits, thus intensifying the dilemma faced by the fresh agricultural product industry. This paper focuses on the association between blockchain technology and overconfidence, in which the third-party LSP is supposed to overestimate the effect of the retailer’s freshness keeping measures. Differing from the previous literature, we analyze a situation wherein blockchain technology is adopted with explicit execution. Based on the optimal control model, we obtained three main conclusions: First, the overconfidence of a third-party LSP does not damage the logistics system but changes the freshness-keeping strategy of the retailer. Second, interestingly, although blockchain technology performs effectively when it is adopted as an initially established system with a freshness keeping strategy, it is not always a wise decision for managers to adopt a blockchain, especially when adopting it as a countermeasure for overconfidence. Third, we found that blockchain technology has a greater effect on freshness-keeping than overconfidence. Thus, in the fresh agricultural product industry, managers should adopt blockchain technology before overconfidence occurs and pay more attention to exogenous prices and freight to decide whether to adopt blockchain technology.

If you don't care, I will switch: online retailers' behaviour on third-party logistics services

PurposeThe issue is which third-party logistics to engage, and escalating customer complaints about service quality of third-party logistics (3PL) enhances the tendency of online retailers to switch to another 3PL. The current study seeks to investigate the factors influencing the satisfaction and switching intention of 3PL services among online sellers in Malaysia.Design/methodology/approachApplying a purposive sampling method, data were gathered via an online survey among online sellers. Initially, the system gathered 418 respondents, but only 311 were useable for further analysis. Since we operationalised the measures as composites, a combination of reflective and formative measurement in the study and the study focuses on explanatory and predictive purposes, partial least squares structural equation modelling with SmartPLS 4 was applied to test the model developed.FindingsThe results indicated that conflict handling had a positive effect on satisfaction, and satisfaction had a negative relationship with the switching intention of 3PL among the online retailers. Moreover, satisfaction and customer relationship management sequentially mediated conflict handling and switching intention, whereas CRM strengthens the negative relationship between satisfaction and switching intention.Research limitations/implicationsThe respondents only limit to the online sellers in Malaysia which based on purposive sampling method, thus the findings cannot be generalised to another countries.Practical implicationsThe study offers insightful information for the managers of the 3PL in crafting a better policy to avoid switching behaviour among their customers. The conflict between customers and providers is unavoidable since consumers have unlimited demand and businesses have limited resources. The findings also benefit online sellers and 3PL service providers to create attractive marketing strategies for business sustainability.Originality/valueThe study developed a new model for the 3PL studies using the S-O-R model in introducing conflict handling and customer relationship management as the stimulus, customer's satisfaction as an organism and switching intention as a response. The study introduced single and sequential mediators also contributes to the S-O-R theory to predict the switching intention among the online sellers towards the 3PL providers. Another important contribution, customer relationship management, was confirmed to play a moderating role to influence the relationship between satisfaction and switching intention.