A grey DEMATEL approach to develop third-party logistics provider selection criteria
Purpose – Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper ide...
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| Published in | Industrial management + data systems Vol. 116; no. 4; pp. 690 - 722 |
|---|---|
| Main Authors | , , |
| Format | Journal Article |
| Language | English |
| Published |
Wembley
Emerald Group Publishing Limited
09.05.2016
|
| Subjects | |
| Online Access | Get full text |
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| Abstract | Purpose
– Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper identifies important criteria for 3PL provider selection and evaluation, and the purpose of this paper is to select 3PL providers from the viewpoint of firms which were already outsourcing their logistics services.
Design/methodology/approach
– This study utilized the grey decision-making trial and evaluation laboratory (DEMATEL) method to develop 3PL provider selection criteria. Because human judgments are vague and complicated to depict by accurate numerical values, the grey system theory is used to handle this problem.
Findings
– The findings revealed the structure and interrelationships between criteria and identified the main criteria for 3PL provider selection. The most important criteria for 3PL provider selection are on time delivery performance, technological capability, financial stability, human resource policies, service quality, and customer service, respectively.
Practical implications
– The paper’s results help managers of automotive industries, particularly in developing countries, to outsource logistics activities to 3PL providers effectively and to create a significant competitive advantage.
Originality/value
– The main contributions of this paper are twofold. First, this paper proposes an integrated grey DEMATEL method to consider interdependent relationships among the 3PL provider selection criteria. Second, this study is one of the first studies to consider 3PL provider selection in a developing country like Iran. |
|---|---|
| AbstractList | Purpose
– Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper identifies important criteria for 3PL provider selection and evaluation, and the purpose of this paper is to select 3PL providers from the viewpoint of firms which were already outsourcing their logistics services.
Design/methodology/approach
– This study utilized the grey decision-making trial and evaluation laboratory (DEMATEL) method to develop 3PL provider selection criteria. Because human judgments are vague and complicated to depict by accurate numerical values, the grey system theory is used to handle this problem.
Findings
– The findings revealed the structure and interrelationships between criteria and identified the main criteria for 3PL provider selection. The most important criteria for 3PL provider selection are on time delivery performance, technological capability, financial stability, human resource policies, service quality, and customer service, respectively.
Practical implications
– The paper’s results help managers of automotive industries, particularly in developing countries, to outsource logistics activities to 3PL providers effectively and to create a significant competitive advantage.
Originality/value
– The main contributions of this paper are twofold. First, this paper proposes an integrated grey DEMATEL method to consider interdependent relationships among the 3PL provider selection criteria. Second, this study is one of the first studies to consider 3PL provider selection in a developing country like Iran. Purpose – Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper identifies important criteria for 3PL provider selection and evaluation, and the purpose of this paper is to select 3PL providers from the viewpoint of firms which were already outsourcing their logistics services. Design/methodology/approach – This study utilized the grey decision-making trial and evaluation laboratory (DEMATEL) method to develop 3PL provider selection criteria. Because human judgments are vague and complicated to depict by accurate numerical values, the grey system theory is used to handle this problem. Findings – The findings revealed the structure and interrelationships between criteria and identified the main criteria for 3PL provider selection. The most important criteria for 3PL provider selection are on time delivery performance, technological capability, financial stability, human resource policies, service quality, and customer service, respectively. Practical implications – The paper’s results help managers of automotive industries, particularly in developing countries, to outsource logistics activities to 3PL providers effectively and to create a significant competitive advantage. Originality/value – The main contributions of this paper are twofold. First, this paper proposes an integrated grey DEMATEL method to consider interdependent relationships among the 3PL provider selection criteria. Second, this study is one of the first studies to consider 3PL provider selection in a developing country like Iran. |
| Author | Vafadarnikjoo, Amin Khodaverdi, Roohollah Govindan, Kannan |
| Author_xml | – sequence: 1 givenname: Kannan surname: Govindan fullname: Govindan, Kannan organization: Department of Technology and Innovation, University of Southern Denmark, Odense, Denmark – sequence: 2 givenname: Roohollah surname: Khodaverdi fullname: Khodaverdi, Roohollah organization: Faculty of Management and Accounting, Allame Tabataba’i University Business School (ATUBS), Tehran, Iran – sequence: 3 givenname: Amin surname: Vafadarnikjoo fullname: Vafadarnikjoo, Amin organization: Faculty of Management and Accounting, Allame Tabataba’i University Business School (ATUBS), Tehran, Iran |
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| Keywords | Supply chain management Grey systems theory Third-party logistics DEMATEL |
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– Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL... Purpose – Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL... Purpose - Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL... |
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| SubjectTerms | Alliances Automobile industry Automotive engineering Case studies Competitive advantage Competitive business Core competencies Costs Criteria Customer satisfaction Customer services Data management systems Decision making Developing countries Freight forwarding Fuzzy sets Information & knowledge management Information systems Inventory Judgments LDCs Logistics Logistics management Mathematical models Methods Outsourcing Quality Set theory Suppliers Supply chains System theory Systems theory Third party |
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| Title | A grey DEMATEL approach to develop third-party logistics provider selection criteria |
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