A systematic literature review of logistics services outsourcing

Logistics is critical in every company's supply chain (SC), and outsourcing helps businesses concentrate on their core competencies. Third-party logistics (3 PL) or logistics service providers (LSPs) assist businesses in cutting costs while improving performance, sustainability, and revenue. Logistics evaluation and LSPs choice are complicated and critical components of value delivery. This study aims to review logistics outsourcing literature to understand the trends, prospects, factors, and strategies used in logistics companies' outsourcing choices. This work examines the literature on LSPs selection published between 2010 and 2023. This paper uses VOSviewer (version 1.6.19) to visualize the relationships. Pricing, timely shipment, service quality, reliability, agility, technology, and consumer feedback are the most commonly utilized, whereas societal and environmental factors are seldom used. The study comprises journal publications, the year, selection criteria, and assessment methodologies. Numerous scholars have discovered and employed many critical selection criteria. Many investigators have also embraced multi-criteria decision-making (MCDM) methodologies, and their fuzzy form is widely used. In conclusion, recommendations for theorists and managers, limits, and future directions for research are offered.

Raut R, Narkhede BE. Analysing the 3PL service provider’s evaluation criteria through a sustainable approach

Purpose

The purpose of this paper is to identify and model the evaluation criteria for the selection of third-party logistics service provider (3PLSP) by an interpretive structural modelling (ISM) approach in the pharmaceutical sector.

Design/methodology/approach

Delphi technique was used for identifying the most significant criteria, and the ISM method was employed for developing the interrelationship among the criteria. Also, the critical criteria for having high influential power were identified by using the Matrice d’Impacts Croisés Multiplication Appliqués à un Classement analysis.

Findings

The most significant factors, namely, capability of robust supply network/distribution network, quality certification and health safety, service quality and environmental quality certifications, were found to have a high driving power, and these factors demand the maximum attention of the decision makers.

Research limitations/implications

As the ISM approach is a qualitative tool, the expert opinions were used for developing the structural model, and the judgments of the experts could be biased influencing the reliability of the model. The developed hierarchical concept is proposed to help the executives, decision and policy makers in formulating the strategies and the evaluation of sustainable 3PLSP.

Originality/value

It is an original research highlighting the association between the sustainable 3PLSP evaluation criteria by employing ISM tool in the pharmaceutical industry. This paper will guide the managers in understanding the importance of the evaluation criteria for the efficient selection of 3PLSP.