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Article
Publication date: 16 February 2015

Saleh Fahed Alkhatib, Robert Darlington and Trung Thanh Nguyen

The purpose of this paper is to provide an insight to the outsourcing decision-making through investigating if the old evaluation/selection criteria and methods still fit with…

3286

Abstract

Purpose

The purpose of this paper is to provide an insight to the outsourcing decision-making through investigating if the old evaluation/selection criteria and methods still fit with current business priorities or not and, therefore, to identify the appropriate criteria and methods to develop a new selection framework. Since the economic recession of 2008, logistics outsourcing decisions have become more prominent to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages.

Design/methodology/approach

This is a focused literature review prepared after analyzing 56 articles related to the logistics service provider (LSP) evaluation and selection methods and criteria during 2008-2013. The academic articles are analyzed based on research focus/area, evaluation and selection methodology/methods and evaluation and selection criteria. Then reviewed result is compared with previous literature studies for the periods (1991-2008) to identify any possible shifts.

Findings

The review reveals that: several problems in current LSPs literature have been identified; the reviewed papers can be categorized into seven groups, the usage and importance of evaluation and selection criteria fluctuate during different periods; 12 crucial criteria have been identified, increasing the importance of specific selection methods and the integrated models and fuzzy logic in logistics literature. Then, a comprehensive LSPs’ evaluation and selection framework has been developed.

Originality/value

To the best of our knowledge, this is the first focused logistics outsourcing study that reviews the 2008-2013 period in detail, comparing results with previous literature studies, identifies current LSPs literature problems/gaps, new trends and shifts in the way that LSPs are evaluated and selected, identifies crucial selection criteria and proposes a new holistic LSPs evaluation and selection framework. In addition, it identifies important issues for future research.

Details

Strategic Outsourcing: An International Journal, vol. 8 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 20 November 2017

Saleh Fahed Alkhatib

The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success factors…

1810

Abstract

Purpose

The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success factors (ISFs) and linking them with the firm’s strategic objectives and logistics requirements. Then, the new integrated approach will be used to compare the outsourcing processes for the upstream and downstream supply chain members. Studies of logistics outsourcing reveal the strategic importance of this process and the increasing need for new strategic approach.

Design/methodology/approach

The design is based on mixed methodology and integrated approach. The fuzzy decision-making trial and evaluation laboratory technique has contributed to the construction of interdependent relationships, development of impact-relationship maps (IRMs) and identifying ISFs. The fuzzy quality function deployment technique was used to link the strategic objectives, logistics requirements and the ISFs to evaluate and select logistics service providers (LSPs) strategically. Finally, two case studies (upstream and downstream supply chains) are used to demonstrate the new approach effectiveness and to highlight the differences/similarities between the two streams.

Findings

In addition to the new strategic logistics outsourcing approach, this study analysed the impact relationships of the LSPs’ framework factors and constructed their maps. In all, 21 ISFs have been identified: 8 logistics key performance indicators, 7 logistics services and activities and 6 logistics resources and capabilities. The two streams’ comparison relived several differences in terms of strategic objectives, logistics requirements and ISFs.

Research limitations/implications

The new approach for strategic logistics outsourcing can help firms to perform a better multi-stakeholder multi-criteria strategic outsourcing process. In addition, the upstream–downstream supply chain comparison increases our understanding how different supply chain members perform different outsourcing processes.

Originality/value

This is one of the pioneering studies that compares the supply chain upstream–downstream perspectives to highlight logistics outsourcing similarities and differences. To the best of author’s knowledge, this is one of the first logistics outsourcing studies that identifies ISFs for strategic logistics outsourcing, provides the first IRMs for the strategic logistics factors and develops a new integrated approach for strategic logistics outsourcing

Details

Journal of Global Operations and Strategic Sourcing, vol. 10 no. 3
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 2 June 2021

Huay Ling Tay and Hui Sen Aw

Outsourcing logistical activities have become a widely used approach for firms to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages…

Abstract

Purpose

Outsourcing logistical activities have become a widely used approach for firms to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages. Lean six sigma (LSS) has been accepted globally across sectors as a management strategy for achieving process excellence. The purpose of this paper is to feature the application of LSS for improving the supplier selection process (SSP) of outsourced logistics services in a multinational health-care company.

Design/methodology/approach

This study is based on an action research case study conducted on the SSP of the freight and distribution department in a multinational health-care company. This paper reports on the application of the LSS define-measure-analyze-improve-control (DMAIC) approach for reducing supplier selection lead time.

Findings

The study features a real-world case study of the LSS DMAIC application to improve the supplier selection process of a large health-care company. The key issues that were identified are lack of information visibility, top-down changes and unclear communication lines. To counteract these three root causes, the lean six sigma techniques that are implemented are the 5S, stakeholder analysis and standard operating procedure.

Research limitations/implications

This research provided empirical evidence of how practical challenges in SSP can be managed with the use of LSS. It further proposed plausible solutions for reducing and sustaining improved outcomes. As the study is limited to one case, the validity of the results can be improved by including more organisations and more case studies from other similar organisations.

Originality/value

Research in supplier selection processes rarely links continuous improvement ideology such as LSS to support strategic selection and procurement of logistics services. This paper could serve as a resource for both practitioners to derive useful implications and to academicians as it contributes to the LSS body of knowledge for further theory testing.

Details

Journal of Global Operations and Strategic Sourcing, vol. 14 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Open Access
Article
Publication date: 26 April 2019

Hella Abidi, Wout Dullaert, Sander De Leeuw, Darek Lysko and Matthias Klumpp

The purpose of this paper is to establish criteria for evaluating strategic partners in a network of logistics service providers (LSPs) to show how analytical network process…

5254

Abstract

Purpose

The purpose of this paper is to establish criteria for evaluating strategic partners in a network of logistics service providers (LSPs) to show how analytical network process (ANP) can be used to identify the weights of these criteria on a case-specific basis, and to investigate whether the ANP model can be used as a starting point to evaluate strategic partners for other LSP networks.

Design/methodology/approach

Based on a literature review of vertical cooperation, the authors develop an overview of criteria for the evaluation of partners in a network of LSPs. The authors then apply ANP at LSP1 to validate the criteria, identify weights for these criteria and to validate model outcomes. Furthermore, the authors investigate whether the ANP model developed for LSP1 can be applied to another LSP with similar characteristics (LSP2). In-depth interviews are used to draw conclusions on the modeling approach and the model outcomes.

Findings

The research shows that evaluation criteria for partners in vertical partnerships between shippers and LSPs are applicable to LSP partners in horizontal partnership networks. The ANP model with criteria weights provides a good starting point for LSPs to customize the evaluation framework according to their specific needs or operating environments.

Originality/value

Limited research is available on evaluating LSP partners in horizontal partnerships. To the best of the authors’ knowledge, this paper is the first to bring forward horizontal LSP partner evaluation criteria to develop an ANP model for LSP partner evaluation and to apply this to two cases, and to provide a starting point for evaluating partners in similar horizontal LSP networks.

Details

The International Journal of Logistics Management, vol. 30 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 13 May 2019

Zachary Williams, Michael S. Garver and Robert Glenn Richey Jr

The influence of security practices is increasingly common in the supply chain management and logistics literature. However, an under-researched area exists within the logistics…

Abstract

Purpose

The influence of security practices is increasingly common in the supply chain management and logistics literature. However, an under-researched area exists within the logistics service provider (LSP) selection process. The purpose of this paper is to introduce a security capability into the LSP selection process. Specifically, this research seeks to understand partner willingness to compensate and collaborate with service providers that possess a security capability.

Design/methodology/approach

Adaptive choice modeling is adopted to assess the influence of a security capability in the LSP selection process. This study represents the first use of this method in supply chain management and logistics research. Cluster analysis is also performed to uncover specific buyer segments along with traditional regression-based significance testing and counting analysis.

Findings

The findings indicate that security can have an important influence on the LSP selection process. In particular, the findings note a willingness to pay for a security capability in LSP selection. Applying segmentation techniques to the findings, three LSP buying segments are determined, each placing different importance and value on LSP capabilities.

Practical implications

This research notes an ongoing provider deficiency in security offerings. Partner firms sometimes maintain a cost focus, but others show a willingness to pay higher prices for access to partners with a security capability. Key practitioner findings include the need to include security with other traditional selection variables. The study walks the researcher and manager through the development of segments based on LSP capabilities.

Originality/value

This manuscript investigates logistic service provider selection. The authors detail an advanced form of conjoint analysis, adaptive conjoint modeling, for first time consideration. Additionally, this is the first study to integrate security into the LSP selection process. This is also the first study to identify a willingness to pay for a security capability.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 4
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 5 October 2015

Satyendra Kumar Sharma and Vinod Kumar

Selection of logistics service provider (LSP) (also known as Third-party logistics (3PL) is a critical decision, because logistics affects top and bottom line as well. Companies…

1632

Abstract

Purpose

Selection of logistics service provider (LSP) (also known as Third-party logistics (3PL) is a critical decision, because logistics affects top and bottom line as well. Companies consider logistics as a cost driver and at the time of LSP selection decision, many important decision criteria’s are left out. 3PL selection is multi-criteria decision-making process. The purpose of this paper is to develop an integrated approach, combining quality function deployment (QFD), and Taguchi loss function (TLF) to select optimal 3PL.

Design/methodology/approach

Multiple criteria are derived from the company requirements using house of quality. The 3PL service attributes are developed using QFD and the relative importance of the attributes are assessed. TLFs are used to measure performance of each 3PL on each decision variable. Composite weighted loss scores are used to rank 3PLs.

Findings

QFD is a better tool which connects attributes used in a decision problem to decision maker’s requirements. In total, 15 criteria were used and TLF provides performance on these criteria.

Practical implications

The proposed model provides a methodology to make informed decision related to 3PL selection. The proposed model may be converted into decision support system.

Originality/value

Proposed approach in this paper is a novel approach that connects the 3PL selection problem to practice in terms of identifying criteria’s and provides a single numerical value in terms of Taghui loss.

Details

Benchmarking: An International Journal, vol. 22 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 7 March 2016

Lisa Brekalo and Sascha Albers

The purpose of this paper is to argue that the productive analyses of logistics alliances in the literature have led to a multitude of heterogeneous contributions. These should be…

4794

Abstract

Purpose

The purpose of this paper is to argue that the productive analyses of logistics alliances in the literature have led to a multitude of heterogeneous contributions. These should be consolidated and systematized in order to synthesize the existing findings in a meaningful way and guide future research for effective design and management; and improve logistics alliance performance in practice.

Design/methodology/approach

The authors use a systematic literature review to screen and consolidate current knowledge on effective design and management of logistics alliances.

Findings

This paper categorizes the logistics literature on vertical and horizontal alliances into four key areas in order to systematically consolidate key performance factors, their sub-constructs and performance effects to identify implications for both research and practice.

Research limitations/implications

Within the research agenda, the authors develop concrete research opportunities in four areas: horizontal logistics alliances; vertical logistics alliances; transfer of new research streams into the context of logistics alliances; and the incorporation of impediments and negative effects.

Practical implications

By consolidating existing research results, the authors provide guidance for managers looking to establish or adapt logistics alliance structures and management systems.

Originality/value

The consolidation of key performance impact factors on logistics alliances (both vertical and horizontal) provides a platform for further research. The developed agenda offers specific research opportunities to improve the understanding of logistics alliance performance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 13 November 2017

Sirpa Multaharju, Katrina Lintukangas, Jukka Hallikas and Anni-Kaisa Kähkönen

Sustainability-related risk management of logistics service providers (LSPs) is an essential part of sustainability performance of focal companies, as logistics services touch the…

1718

Abstract

Purpose

Sustainability-related risk management of logistics service providers (LSPs) is an essential part of sustainability performance of focal companies, as logistics services touch the entire supply chain (SC) – from raw material sources to end-customers. The purpose of this paper, draws on resource-based view and stakeholder theory in exploring how companies can manage environmental and social sustainability-related risks from logistics service suppliers. This kind of capability is essential in order to maintain reputation in the eyes of stakeholders, and to maintain long-term financial performance.

Design/methodology/approach

The data of this multiple-case study were collected from semi-structured interviews in eight case-companies in Finland. Five of the cases are primary logistics buyers, and three represent LSP companies.

Findings

The cross-case analysis showed that primary buyers of logistics services use their sustainability criteria as a prerequisite for LSP candidates, and when the level is adequate and equal, other factors, e.g. price and capacity, are decisive. Based on the analysis, large LSPs are preparing for the future competition, and act in a more sustainable manner than their customers (buyers) expect at the moment, while small LSPs strictly comply with the regulation. However, buyers’ requirements for sustainable logistics services are increasing as the stakeholder expectations for comprehensively sustainable SCs are growing.

Originality/value

Only little research has been conducted on sustainable logistics from the buyer company’s risk management perspective. This paper adds the knowledge of sustainability-related risk management in purchasing of logistics services and in the logistics industry.

Details

The International Journal of Logistics Management, vol. 28 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Open Access
Article
Publication date: 7 December 2021

Linnea Haag, Erik Sandberg and Uni Sallnäs

This study aims to explain how learning occurs in collaborative retailer–logistics service provider (LSP) relationships. The research is guided by two research questions…

1423

Abstract

Purpose

This study aims to explain how learning occurs in collaborative retailer–logistics service provider (LSP) relationships. The research is guided by two research questions, addressing absorptive and desorptive capacities and the interaction between these capacities.

Design/methodology/approach

The study is based on a case study of a Swedish, collaborative retailer–LSP dyad. The empirical data are structured around five specific learning situations within the retailer–LSP dyad.

Findings

The findings provide an explanation for how learning occurs within a collaborative retailer–LSP relationship based on subprocesses of absorptive and desorptive capacities. The interaction between these processes is found to rely on two types of support: one-directional and bidirectional. The findings also indicate positive outcomes of learning, such as improved cost efficiencies in warehouse operations, better customer services and improved long-term strategic planning.

Practical implications

This study shows how retailers and LSPs can learn from each other and together create an improved logistics system for end customers.

Originality/value

This research takes into account absorptive and desorptive capacities in a collaborative retailer–LSP relationship. This study enhances the understanding of inter-organisational learning processes in a retail logistics context.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 13
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 19 April 2013

Carolina Luisa dos Santos Vieira, Antônio Sérgio Coelho and Monica Maria Mendes Luna

Information and communication technology (ICT) plays a critical role in supporting logistics services outsourcing arrangements. Despite the literature highlighting the benefits of…

2545

Abstract

Purpose

Information and communication technology (ICT) plays a critical role in supporting logistics services outsourcing arrangements. Despite the literature highlighting the benefits of ICT usage by logistics service providers (LSPs), a gap between what is expected of ICT and satisfaction with LSP performance has persisted. Seeking to reduce this gap, the purpose of this paper is to propose an ICT implementation process designed for LSPs.

Design/methodology/approach

A theoretical model was built, which took into account the ICT implementation models identified in the literature and the LSP requirements from ICT usage. The model was adjusted according to technology innovation and change management practices. A multi‐case descriptive study was conducted to evaluate the adequacy of this model in practice.

Findings

The proposed ICT implementation model designed for LSPs combines both theoretical and empirical research. It comprises 39 activities, of which 32 were available in the literature and seven are new – mainly for aspects related to external integration. Through multiple‐case analysis, the model proved itself appropriate for supporting a step‐by‐step ICT implementation in LSPs.

Originality/value

The paper considers LSP requirements related to integrating and coordinating supply chains in the proposed model. In addition to an engineering perspective, it addresses behavioral issues for technology acceptance. It also exposes the problem posed by the definition of implementation process boundaries. Moreover, it features case studies in the Brazilian LSP industry, which has received little attention in the mainstream literature.

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