PLANNING, DESIGN AND OPTIMIZATION FOR THE SELECTION OF 3PL SERVICE PROVIDERS

Abstract

Logistics is an inclusive part of supply chain management. Logistics management plays a significant role in making the supply chain robust, flexible and agile. Contribution of 3PL service providers is now considered to be an indispensable part of inbound and outbound logistics of a firm, all over the globe. Global logistics providers are on the verge of providing almost anything in any part of the globe, in a real time and added values. The LPG effects (liberalization, privatization and globalization) and rapid technological advancements accrue the production and service growth in businesses with enhanced challenges. The fierce market competition and the race against time, compel shippers to deliver products and services at the rapid pace. Fast access to customers with effective logistics management would be a success strategy of the coming days. Thus the present study has a high relevance to the practicing managers and academia. This research has attempted to fill some of the voids in the body of knowledge. An exhaustive and comprehensive literature review has been conducted to identify the gaps in the existing literature on logistics outsourcing. This research is aimed to examine the current status of logistics outsourcing practices followed in the Indian industries operating in the automobile sector. An insight of the company practices has been revealed through brain storming and one-to one discussion with logistics mangers. An attempt has also been made to study the various criteria responsible to earmark the 3PL service providers that are practiced by the logistics managers. In order to bridge the gap between the theory and practice various brain storming session were conducted to examine the selection practices of criteria. An integrated model using interpretive structure modeling (ISM) and fuzzy MICMAC has been built to help logistics managers. The developed fuzzy based model is helpful to select the important criteria that would meet the specific demand iv from 3PL service providers. The use of fuzzy logic helps to take care of the vagueness and impreciseness of the data. Another model using ISM and MICMAC is developed for the logistics outsourcing. The model helps the logistics managers to enhance their productivity and competitiveness by devoting attention to few identified variables. An Axiomatic design (AD) approach has been used to design a selection strategy for 3PL service providers, who can meet the needs of shippers in a best possible manner. Various fuzzy based selection approaches are also developed for logistics mangers which will help them to meet their selective demand under different scenarios. A fuzzy Analytic network process approach may help the logistics managers to examine the interaction and influence among the criteria whereas a fuzzy Qualify function deployment (fuzzy QFD) model may take care of the shippers' satisfaction to meet the specific needs. A fuzzy optimization model has also been developed to optimize the available solutions in terms of 3PL alternatives to enhance the decision making ability of logistics managers. The main contribution of this research is given below: • An extensive and comprehensive literature review is undertaken in order to identify the research gaps and research issues in the logistical supply chain management and to provide solid platform to explore the future related research. • An Axiomatic design (AD) based approach has been used to design the strategy for the selection of 3PL service providers under fuzzy environment. • Interpretive structure modeling (ISM) and Matrice d'impacts Croises — Multiplication Appliqnce a un Classement or cross impact matrix-multiplication applied to classification (fuzzy MICMAC) based model has been developed for the selection of criteria to identify the potential 3PL service providers. • Another model based on above methodologies i.e. ISM and MICMAC has been developed for the logistics outsourcing relationship variables in order to provide -v clear insight to enhance shippers' productivity and competitiveness in logistical supply chain • Various fuzzy based approaches have been used to develop models which may be used in different scenario to suit the specific needs of shippers, for instance, a fuzzy Analytic network process (fuzzy ANP) model may be employed to include the mutual influence of criteria while selecting 3PL service providers or fuzzy Qualify function deployment (fuzzy QFD) model may be employed to take care of shippers' satisfaction to meet the specific needs. • An optimization model based on fuzzy Technique for order preference by similarity to ideal solution (Fuzzy TOPSIS) has been developed to select the potential 3PL service providers in an environment of multiple alternatives and conflicting selection criteria. • Performance evaluation of 3PL service provider leading to the TQM practices has also been carried out using fuzzy logic and Graph theoretic and Matrix approach. A fuzzy Graph theoretic and Matrix approach model has been developed to help the logistics mangers before its selection. Keywords: 3PL Service Providers, Axiomatic Design, Interpretive Structure Modeling, MICMAC, Fuzzy MICMAC, Fuzzy Analytic Hierarchy process, Fuzzy Analytic Network Process, Fuzzy Graph theoretic and Matrix approach, Fuzzy TOPSIS.