Abstract:The green supply chain is an innovation that extends traditional sustainability initiatives to environmental activities in the supply chain and aims to minimize a product's environmental impact throughout its life cycle. The adoption of a green supply chain involves a complex decision-making process characterized by multiple criteria. The goal of the current study is to construct a decision framework by identifying a comprehensive set of consideration factors and their causal relationships. The consideration factors are deliberately drawn from a variety of different, yet related, theories and are grouped into an extensive Technology-Organization -Environment (TOE) framework. In accordance with the Decision Making Trial and Evaluation Laboratory (DEMATEL) method, the decision framework was analyzed for appropriateness through surveys of selected experts in the semiconductor industry. Because the semiconductor industry has a long history of heavy resource usage and has proven an early advocate of green supply chains, results from this study can provide insights to other firms with similar operations and aims. The contributions of this research are twofold. First, its theoretical contribution consists of integrating previously separate strands of different theories into a holistic framework and exploring the causal relationships among decision factors. Second, its practical contribution lies in its establishment of a strategic path that provides firms a set of priorities when adopting green supply chains.
Purpose
– The purpose of this study was to identify the key third-party logistics (3PL) selection criteria for the integrated circuit (IC) manufacturing industry in Taiwan. The IC manufacturing industry seeks global sourcing, and is facing increasing pressure due to fierce market competition. More than a cost reduction strategy, 3PL is a strategic tool for IC manufacturers to gain a competitive advantage in a global supply chain complex.
Design/methodology/approach
– The triangulation method that combines qualitative and quantitative approaches was used in the study. The qualitative approach of focus group discussions was adopted to establish the decision framework, and the quantitative approach of the analytic hierarchy process was used to explore the relative importance of the 3PL selection criteria. Finally, an in-depth proof-by-example interview was undertaken to provide an insightful interpretation of the research results.
Findings
– The research shows that performance is the most important criterion group, followed by cost, service, quality assurance, intangible and information technology. At the detailed sub-criteria level, document accuracy, problem-solving capability, continuous cost reduction, value-added services and associated cost control capability are the top five criteria.
Research limitations/implications
– This study focused on the IC manufacturing sector in Taiwan. Multi-country and multi-industry studies are recommended to help further validate and generalise the research findings.
Originality/value
– Due to its application of triangulation, this study is a pioneering work on the 3PL selection criteria in a high-tech manufacturing industry. Furthermore, the value of this research is that it enhances the body of knowledge of 3PL selection by identifying certain emerging selection criteria, it could serve as a guideline for IC manufacturers in planning logistics outsourcing actions and it could significantly contribute to the efforts of 3PL providers in evaluating whether they comply with customer needs and adhere to core competency development.
The semiconductor industry has a unique vertically disintegrated structure that consists of various firms specializing in a narrow range of the value chain. To ensure manufacturing and logistics efficiency, the semiconductor manufacturers considerably rely on 3PL suppliers to achieve supply chain excellence. However, 3PL supplier selection is a complex decision-making process involving multiple selection criteria. The goal of this paper is to identify the key 3PL selection criteria by employing the nonadditive fuzzy integral approach. Unlike the traditional multicriterion decision-making (MCDM) methods which often assume independence among criteria and additive importance weights, the nonadditive fuzzy integral is a more effective approach to solve the dependency among criteria, vagueness in information, and essential fuzziness of human judgment. In this paper, we demonstrate an empirical case that employs the nonadditive fuzzy integral to evaluate the importance weight of selection criteria and choose the most appropriate 3PL supplier. The research result can become a valuable reference for manufacturing companies operating in comparable situations. Moreover, the systematic framework presented in this study can be easily extended to the analysis of other decision-making domains.
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