Benchmarking the outsourcing factors of third-party logistics services selection: analysing influential strength and building a sustainable decision model

Ahmed Khan, Sharfuddin, Alkhatib, Shahed, Ammar, Zaina, Moktadir, Md. Abdul and Kumar, Anil (2021) Benchmarking the outsourcing factors of third-party logistics services selection: analysing influential strength and building a sustainable decision model. Benchmarking: an International Journal. ISSN 1463-5771 (In Press)

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Official URL: https://doi.org/10.1108/BIJ-03-2020-0121

Abstract / Description

Purpose:
Outsourcings always affect crucial supply chain functions concerning flexibility and cost. During the decision to outsource and consider third-party logistics service (3PLs) provider selection, decision-makers need to pay more attention to certain critical outsourcing factors such as coordination, integration and cooperation as these key factors are essential to improve overall supply chain performance. The main purpose of this work is to identify the inter-relations among outsourcing decision factors to highlight the most important and influential factors that should be considered and carefully thought through when making outsourcing sustainable decisions.

Methodology:
A two-phased methodology has been used in this study. In the first phase, outsourcing decision factors are identified from existing literature and validated by decision-makers from industry and academia. To understand the influential strength and build a sustainable model, the decision-making trial and evaluation laboratory (DEMATEL) method is employed. A courier company in the United Arab Emirates is considered for implementation.

Findings:
All identified and validated factors are segregated into two categories (cause and effect). The result shows that the most influential factors are; developing strategic alliances, uncertainty and risk mitigation and deficiency of internal resources for a service.

Practical implications:
There are several insights for industry managers and practitioners. The results of the study may help practitioners and logistics managers to make the logistics service sustainable and more efficient for businesses.

Originality/value:
The originality of the study is that this study focuses on a courier company to understand the interdependencies among outsourcing decision factors; this is unique in this field of literature.

Item Type: Article
Uncontrolled Keywords: outsourcing decision; sustainability; outbound logistics; Benchmark; DEMATEL; sustainable logistics
Subjects: 600 Technology > 650 Management & auxiliary services
Department: Guildhall School of Business and Law
Depositing User: Anil Kumar
Date Deposited: 25 Aug 2021 08:35
Last Modified: 08 Sep 2021 15:24
URI: http://repository.londonmet.ac.uk/id/eprint/6930

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