How to choose an effective third party logistics provider

Aghazadeh, Seyed‐Mahmoud

doi:10.1108/01409170310783583

Cited by 74 publications

(47 citation statements)

References 5 publications

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“…They posit that the capability to reduce cost related to transportation would have significant impact on reducing the warehousing and inventory cost. What is more, third party logistics can support retailers to reduce activity base costing and sustain their long run profit [14]. The lower logistics cost occur in operation, the price of goods can be more competitive.…”

Section: Resultsmentioning

confidence: 99%

“…In addition, there are many studies conclude that IT has strong relationship to reduce logistics cost. For example, Redwood Systems is a logistics company that can guarantee their customer to save for 15 to 30 percent in logistics cost [14]. This company has successuffly implemented EXE software suite.…”

Section: Logistics Costmentioning

confidence: 99%

“…The sales level contributes to decrease and improve the profit of businesses [14]. Sales include all integrated activities that delivering goods or services from producer to the customers.…”

Section: E the Sales Levelmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Logistics Performance on the Sales Level: An Empirical Study in Retail Sector

Marwan

Hadi

2013

SSRN Journal

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Section: Resultsmentioning

confidence: 99%

Section: Logistics Costmentioning

confidence: 99%

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The Impact of Logistics Performance on the Sales Level: An Empirical Study in Retail Sector

Marwan

Hadi

2013

SSRN Journal

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“…In [4], the author has presented the five steps involved in choosing an effective 3PLs provider and which are: making decision, developing criteria and objectives, the weeding out process, determining the top project and beginning the new partnership.…”

Section: Review Of Literaturementioning

confidence: 99%

Multicriteria Decision Aid Tool for Third-Party Logistics Providers' Selection

Aguezzoul

Rabenasolo

Jolly-Desodt

2006

2006 International Conference on Service Systems and Service Management

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The outsourcing of logistics activities has become a common practice by many companies, which implies an efficient choice of the Third-Party Logistics (3PLs) providers. A literature review on the 3PLs provider's selection problem shows that this selection is a very complex process which depends on several factors, which are often in conflict with one another, such as price, quality, service, location, technology, etc. This paper proposes a software tool using ELECTRE method for selecting the 3PLs providers. This tool incorporates various selection criteria and allows the user to introduce other criteria according to his needs. The application of our tool is demonstrated through an illustrative example.

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“…According to Aghazadeh (2003), during the 1970's, 3PL originally began as a public warehousing provider. Later during the 1980's, due to the need to improve customer service of distribution managers, 3PL expanded to offer throughput besides just selling space.…”

Section: Reasons For Outsourcing Business To 3plsmentioning

confidence: 99%

Real-time optimization of an integrated production-inventory-distribution problem.

Yang¹

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DEDICATIONThis dissertation is dedicated to my parents In today's competitive business environment, companies face enormous pressure and must continuously search for ways to design new products, manufacture and distribute them in an efficient and effective fashion. After years of focusing on reduction in production and operation costs, companies are beginning to look into distribution activities as the last frontier for cost reduction.In addition, an increasing number of companies, large and small, are focusing their efforts on their core competencies which are critical to survive. This results in a widespread practice in industry that companies outsource one or more than one logistics functions to third party logistics providers. By using such logistics expertise, they can obtain a competitive advantage both in cost and time efficiency, because the third party logistics companies already have the equipment, system and experience and are ready to help to their best efforts.In this dissertation, we developed an integrated optimization model of production, inventory and distribution with the goal to coordinate important and interrelated decisions related to production schedules, inventory policy and truckload allocation. Because outsourcing logistics functions to third party logistics providers is becoming critical for a v company to remain competitive in the market place; we also included an important decision of selecting carriers with finite truckload and drivers for both inbound and outbound shipments in the model. In recent years, multi-agent simulation has been a preferred approach to solve logistics and distribution problems, since these problems are autonomous, distributive, complex, heterogeneous and decentralized in nature and they require extensive intelligent decision making. Another important part in this dissertation involved a development of an agent-based simulation model to cooperate with the optimal solution given by the optimization model. More specifically, the solution given by the optimization model can be inputted as the initial condition of the agent-based simulation model. The agent-based simulation model can incorporate many other factors to be considered in the real world, but optimization cannot handle these as needed. The agent-based simulation model can also incorporate some dynamics we may encounter in the real operations, and it can react to these dynamics in real time. VIVarious types of entities in the entire distribution system can be modeled as intelligent agents, such as suppliers, carriers and customers. In order to build the simulation model more realistic, a sealed bid multiunit auction with an introduction of three parameters a, ~ and y is well designed. With the help of these three parameters, each agent makes a better decision in a simple and fast manner, which is the key to realizing real-time decision making.After building such a multi-agent system with agent-based simulation approach, it supports more flexible and comprehensive modeling capabilities which are difficult...

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How to choose an effective third party logistics provider

Cited by 74 publications

References 5 publications

The Impact of Logistics Performance on the Sales Level: An Empirical Study in Retail Sector

The Impact of Logistics Performance on the Sales Level: An Empirical Study in Retail Sector

Multicriteria Decision Aid Tool for Third-Party Logistics Providers' Selection

Real-time optimization of an integrated production-inventory-distribution problem.

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