Sustainable evaluation and selection of potential third-party logistics (3PL) providers

Abstract

Purpose The purpose of this paper is to efficiently assist the decision makers in evaluating and selecting the most appropriate third-party logistics (3PL) provider from environmental sustainability perspective using a two-phase model based on data envelopment analysis (DEA) and analytic network process (ANP). Design/methodology/approach The study uses an integrated approach of DEA and ANP as an evaluation and selection methodology to select an efficient and requisite 3PL. The integrated model is a sound technique for 3PL evaluation and selection. DEA effectively screens the maximally efficient 3PLs, whereas ANP easily performs the cumbersome process of weighting diverse criteria and ranks various alternatives according to their performance on the basis of these criteria. This study lists the prominent evaluation and selection criteria taking into consideration the environmental sustainability. Finally, a real-life industrial application is presented to demonstrate the proposed method. Findings The current research work is devoted to the emerging research topic of environmental sustainability in logistics industry and supply chain management. The results of study indicate that eco-efficient transportation and 3PLs lead better transportation planning, better inventory and warehouse management, lower inventory cost and sustainable supply chain operations. Also, the applied approach enables the decision makers to better understand the complex relationships of the relevant criteria in the decision-making process. Research limitations/implications This study does not investigate the relationships between environmental performances and differentiation advantage from the perspective of 3PLs. Also, sensitivity analysis is not performed. Practical implications The developed integrated model enables decision analysts to better understand the complete evaluation process of 3PL evaluation and selection considering environmental sustainability perspective. Furthermore, the developed approach provides a more flexible, simple, accurate, effective, and systematic decision support tool for 3PL evaluation and selection. Originality/value The current study is first of its kind to use the integrated approach in evaluation and selection of 3PLs from environmental sustainability perspective considering the inter-dependencies among the evaluation and selection criteria.

Selection and evaluation of third party logistics in the supply chain: A systematic review

“…Para la evaluación de los 3PL desde la perspectiva de la sustentabilidad ambiental, Raut et al (2018) implementan una metodología MCDM en dos fases: DEA y ANP. Los autores proponen un método integrado para la toma de decisiones en el proceso de selección y evaluación de 3PL basado en el desempeño desde una perspectiva de sustentabilidad ambiental.…”

“…Enfoques y métodos para la evaluación y selección de 3PL Datos (DEA)Raut et al (2018),Marchet et al (2017),Haldar et al (2017),Momeni et al (2015),Falsini et al (2012),Zhang et al (2006) Proceso Analítico en Red (ANP)Raut et al (2018),Çelebi et al (2010) Técnica Difusa para Orden de Preferencia por Similitud con Solución Ideal (TOPSIS)Bianchini(2018), Haldar et al (2017), Ilgin (2017), Yayla et al (2015) Toma de decisiones interactiva y de criterios múltiples (TODIM) Kumar Sen et al (2017) Método de Organización de Clasificación de Preferencias para Evaluaciones Enriquecidas (PROMETHEE) Kumar Sen et al (2017), Wang et al (2015), Chen et al (2010) Importancia a través de la Correlación entre Criterios (CRITIC) Ghorabaee et al (2017) Evaluación del Producto de Suma Agregada Ponderada (WASPAS) Laboratorio de Prueba y Evaluación en Entornos Grises para la Toma de (DEMATEL) Govindan et al (2016) Números Difusos con Valores de Intervalo (IVFNs) Sahu et al (2015) Despliegue de la Función de Calidad (QFD) Perçin and Min (2013) Proceso Analítico de Jerarquía (AHP) Bianchini (2018), Hwang et al (2016), Falsini et al (2012), Soh (2010), Zhang et al (2006) Proceso Analítico de Jerarquía Difuso (AHP Difuso) Ilgin (2017), Jung (2017), Ramírez-Flores et al(2017) conjuntos difusos Li et al (2012), Soh(2010), Liu and Wang (2009), Işiklar et al (2007) Razonamiento Basado en Casos (CBR) Işiklar et al (2007) Razonamiento Basado en Reglas (RBR)…”

Finding the Best Third-Party Logistics in the Automobile Industry: A Hybrid Approach

“…A new term related to logistics services is Fourth-Party Logistics (4PL) which considers companies that provide novel, integrated, or customized services using the resources of other companies. Raut, Kharat, Kamble, and Kumar [25] used Data Envelopment Analysis (DEA) and Analytical Network Process (ANP) to evaluate 3PL companies. The result revealed that 3PL causes better transportation, inventory, and warehouse management.…”

A Decision Making Tool for Selection of LSPs

“…Thus, the implementation of the statistical approaches requires a collection of measurable quantitative data from the beginning of the study, while artificial intelligence methods are used to model knowledge rather than data. The strength of MCDM methods is to present themselves as effective alternatives to methods of classic optimization such as mathematical programming, based on the definition of a single function, often expressed in economic (monetary) terms and which reflects the consideration of several criteria, often immeasurable (Pourjavad & Shirouyehzad, 2011;Raut et al, 2018). More generally, as noted by Fenies (2011), decision support in the logistics context is now at the crossroads, as far as any modeling approach must simultaneously integrate algorithmic and systemic complexities of the problem posed, here LSP selection.…”