Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30054
Criteria of Selecting 3pl Provider: A Literature Review

Authors: Rajesh Gupta, Anish Sachdeva, Arvind Bhardwaj

Abstract:

Shippers are concentrating on the core competency to stay competitive and outsourcing the logistic activities to the third party who is expert in this field. This third party logistics (3PL) is drawing the due attention at government, industrial, academicians and practitioner-s levels. If the logistics cost in India can be brought down from the current level of 13% of GDP to 9% (level in the U.S.), the savings would be around Rs 3 lakh crore approximately per annum. But the problem with the shippers is to select the suitable 3PL provider. Various criteria for selection of 3PL have been listed in the literature which are discussed in the present literature review. Every shipper will select the criteria suitable to its own requirement which have to be dynamically reviewed time to time so as to fit in the ever changing environment.

Keywords: 3PL, criteria, shipper, outsourcing

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1075080

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF

References:


[1] Viswanadham N. and Roshan Gaonkar, "Leveraging Logistics To Enhance Indian Economic Competitiveness", CII Logistics 2003 Theme Paper
[2] Stock, J.R and Lambert, D.M.(2001), Strategic Logistics Management; fourth edition. Boston: McGraw-Hill International Editions.
[3] Meade, L.M. and Sarkis, J.(2002), "A conceptual model for selecting and evaluating third-party reverse logistics providers", Supply Chain Management: An International Journal, Vol.7 No.2, pp.283-95.
[4] Andersson, D. and Norrman, A.(2002), "Procurement of logistics services - a minutes work or a multi-year project?", European Journal of Purchasing and Supply Management, Vol.8 No.1, pp. 3-14.
[5] Council of Logistics Management-s (CLM) 2003 Annual Report, Illinois US, Sep. 2003.
[6] R. Bhatnagar, A.S. Sohal and R. Millen, "Third party logistics services: a Singapore perspective," International Journal of Physical Distribution & Logistics Management, vol. 29 No. 9, pp. 569-587, 1999.
[7] Langley Jr., C.J.(2007), "Third party logistics study: results and findings of the 12th annual study", Georgia Institute of Technology, Atlanta, GA
[8] Subrata Mitra, The 2008 Survey of Indian Third-Party Logistics (3PL) Service Providers: Comparisons with the 2004 Survey of Indian 3PLs and 2006 Survey of North American 3PLs WPS No. 633/ February 2009
[9] Subrata Mitra, A Survey of the Third-Party Logistics (3PL) Service Providers in India, WPS No. 562/ October 2005
[10] Vanhaverbeke, W., Duysters, G., & Noorderhaven, N. (2002). External technology sourcing through alliances or acquisitions: An analysis of the application-specific integrated circuits industry. Organization Science, 13(6), 714-733.
[11] Qureshi, M.N., Kumar, D. and Kumar, Pradeep (2008c), "An integrated model to identify and classify the key criteria and their role in the assessment of 3PL services providers", Asia Pacific Journal of Marketing and Logistics, Vol.20 No.2, pp.227-49.
[12] Dulmin, R., & Mininno, V. (2003). Supplier selection using a multicriteria decision aid method. Journal of Purchasing and Supply
[13] Talluri, S., & Narasimhan, R. (2003). Vendor evaluation with performance variability: A max-min approach. European Journal of Operational Research, 146(3), 543-552.
[14] Choy, K. L., Lee, W. B., & Lo, V. (2003). Design of an intelligent supplier relationship management system: A hybrid case based neural network approach. Expert Systems with Applications, 24, 225-237.
[15] Ding, H., Benyoucef, L., & X. Xie. (2003). A simulation-optimization approach using genetic search for supplier selection. In: Proceedings of the 2003 Winter Simulation Conference (pp. 1260-1267).
[16] Kumar, M., Vrat, P., & Shankar, R. (2004). A fuzzy goal programming approach for vendor selection problem in a supply chain. Computers and Industrial Engineering, 46(1), 69-85.
[17] E. Aktas and F. Ulengin, The Journal of Enterprise Information Management, Vol. 18 No. 3, 2005 pp. 316-329
[18] Tug╦ÿba Efendigil, Semih Onut, Elif Kongar ,(2007)," A holistic approach for selecting a third-party reverse logistics provider in the presence of vagueness", Computer And Industrial Engineering, vol. 54, pp 269-287
[19] www.iwla.com
[20] Aghazadeh, S.M., 2003, "How to choose an effective third party logistics provider?", Management Research News, 26, 7, 50-58.
[21] Olhager, J. and Selldin, E., (2004), .Supply Chain Management Survey of Swedish Manufacturing Firms., International Journal of Production Economics, 89, (3), pp. 353-361.
[22] Hong, G. H., Park, S. C., Jang, D. S., & Rho, H. M. (2005). An effective supplier selection method for constructing a competitive supply relationship. Expert Systems with Applications, 28, 629-639.
[23] Sahay, B S and R Mohan, 2004, "Third-party logistics practices: an Indian perspective", Unpublished.
[24] Joshi, V. and Chopra, S.K. (2004), .Best Practices in Supply Chain Management at Modi Xerox., In Sahay, B.S. (ed.), Supply Chain Management for Global Competitiveness, 2nd edition, Macmillan, New Delhi, pp. 549-562.
[25] Deshmukh, S.G. and Mohanty, R.P. (2004), .Re-engineering of Supply Chain: Lessons from Select Case Studies., In Sahay, B.S. (ed.), Supply Chain Management for Global Competitiveness, 2nd edition, Macmillan, New Delhi, pp. 509-526.
[26] Kankal, R.A. and Pund, B.S. (2004), .Reengineering of Supply Chain: The Case of Crompton Greaves., In Sahay, B.S. (ed.), Supply Chain Management for Global Competitiveness, 2nd edition, Macmillan, New Delhi, pp. 527-537.
[27] van Damme, D.A. and van Amstel, M.J.P.(1996),"Outsourcing logistics management activities", International Journal of Logistics Management, Vol.7 No.2, pp.85-95.
[28] Razzaque, M.A. and Sheng, C.C., 1998, "Outsourcing of logistics functions: a literature survey", International Journal of Physical Distribution & Logistics Management, 26, 2, 89-107.
[29] Andersson, D. and Norrman, A.(2002), "Procurement of logistics services - a minutes work or a multi-year project?", European Journal of Purchasing and Supply Management, Vol.8 No.1, pp. 3-14.
[30] Arroyo, P., Gaytan, J. and de Boer, L.(2006), "A survey of third party logistics in Mexico and a comparison with reports on Europe and USA", International Journal of Operations & Production Management, Vol.26 No.6, pp.639-67.
[31] Sorkamo, Ritva 2001. Asiakasinfo. Uuden talouden It-ratkaisut. 3/2001. Novo Group.
[32] A. Petroni and M. Braglia, "A quality- assurance oriented methodology for handling trade- offs in supplier selection," International Journal of Physical Distribution & Logistics Management, vol. 30, no. 2, pp. 96- 111, 2000.
[33] T. L. Freese, "Outsourcings: How to select a Third Party Operator," available at www.freeseinc.com/Monographs/Outsourcing. Pdf
[34] Tsai, M-C., Wen, C-H. and Chen, C-S., 2007, "Demand choice of hightech industry for logistic service providers - an empirical case of an offshore science park in Taiwan", Industrial Marketing Management, 36, 5, 617-626.
[35] Qureshi, M.N., Kumar, D. and Kumar, Pradeep (2007c), "Modeling the logistics outsourcing relationship variables to enhance shippers, productivity and competitiveness in logistical supply chain", International Journal of Productivity and Performance Management, Vol.56 No.8, pp.689 -714.
[36] Gulcin Buyu kozkan, Orhan Feyzioglu, Erdal Nebol, "Selection of the strategic alliance partner in logistics value chain", Int. J. Production Economics 113 (2008) 148-158
[37] Hao-Tien Liu, Wei-Kai Wang,"An integrated fuzzy approach for provider evaluation and selection in third-party logistics", Expert Systems with Applications 36 (2009) 4387-4398