Applying EBM Model and Grey Forecasting to Assess Efficiency of Third-Party Logistics Providers

Abstract

A third-party logistics (TLP) provider’s outsourcing mode is developed to support the economic activities for various industries. The aim of this research is to assess the efficiency of 10 large TPL providers from past to future by integrating the GM (1,1) model in grey forecasting and an epsilon-based measure model (EBM) in data envelopment analysis (DEA). The GM (1,1) model is utilized to formulate a forecast data in the future over period from 2018 to 2022. Then, via EBM model, past–current–future data are used for computing efficiency of these providers. The empirical values show that 115 cases comprise 79 efficiency cases and 36 inefficiency cases. CHRW, ECHO, and UPS get strong efficiency and keep a stable efficiency score in whole term. EXPD and KRRYF do not achieve efficiency during the period from 2013 to 2022. Excluding CHRW, ECHO, and UPS, seven TPL providers demonstrate upward trend and downward trends in every term. The increasing and decreasing variation index of 10 third-party logistics providers will help customers to select the best TPL providers.

Integrated Data Mining and TOPSIS Entropy Weight Method to Evaluate Logistics Supply and Demand Efficiency of a 3PL Company

“…3PL, as a dominant role in regulating the operation of the supply chain, is also entrusted with great research importance. A few scholars have established the evaluation method for assessing the performance of 3PL enterprises, of which AHP is mostly used, e.g., [51]; [23,52].…”

“…In the field of logistics, many quantitative models have been established to explore the complexity of the supply chain [16][17][18][19][20][21]. Some quantitative methods have been employed for the assessment of the operational capacity and efficiency of 3PL with the purpose of selecting the reliable suppliers as cooperative partners and providing strategic basis for defining the policy [1,5,13,22,23]. Owing to the considerable significance of assessing and thus improving the performance of the 3PL, the application of quantitative models in dealing with the 3PL issues tends to be a promising topic in the logistics subject.…”

A Correlative Analysis of Modern Logistics Industry to Developing Economy Using the VAR Model: A Case of Pakistan

“…In contrast, other studies have investigated the impact of transport and logistics in investigating similar relationships [12][13][14]. For example, researchers in those studies analyzed multiple associations, including the interrelationship between traffic turnover volume, freight volume, and economic growth [38,39]; relating the port capacity to the total value of import and export; linking external trade to economic growth [13,16,24]; and associating logistics services to economic activity [40]. Likewise, other studies focused on logistics infrastructure in exploring its positive relationship with economic growth [15,17,41] and mostly applied quantitative models to study this correlation [42,43].…”

“…Here, the main objective was to identify the influential factors [30][31][32][33] and explain an interrelation between logistics and economy [34][35][36][37]. In contrast, other studies have investigated the impact of transport and logistics in investigating similar relationships [12][13][14]. For example, researchers in those studies analyzed multiple associations, including the interrelationship between traffic turnover volume, freight volume, and economic growth [38,39]; relating the port capacity to the total value of import and export; linking external trade to economic growth [13,16,24]; and associating logistics services to economic activity [40].…”

“…Some researchers observed logistics in exploring similar relationships [9][10][11]. In contrast, the other empiricists investigated the impact of transport and logistics on economic growth [12][13][14]. Besides, few scholars have also focused on logistics infrastructure and its positive relationship with economic growth [15][16][17].…”