Interval Type-2 Fuzzy Super SBM Network DEA for Assessing Sustainability Performance of Third-Party Logistics Service Providers Considering Circular Economy Strategies in the Era of Industry 4.0

Abstract

Stakeholders are increasingly aware of the aspect of sustainability, and the fact that the circular economy facilitates the achievement of sustainable development goals. They place pressure on supply chains to become sustainable, and for this reason, third-party logistics (3PL) service providers, as specialized professionals, play a vital role in sustainable supply chain management. Although developments in technology in the era of Industry 4.0 have been effective at directing 3PLs along the path towards sustainability, integrated management of forward and reverse logistics systems in order to achieve a circular economy and to become sustainable remains a problem, even in developed countries. However, benchmarking and using the experiences of others can help to speed up this path at a minimal cost. An interval type-2 fuzzy super-slack-based measure network DEA was developed to make such benchmarking possible. Governance style, staff behavior, environmental management systems, and social elements are considered, alongside the principles of the circular economy, in order to compare the sustainability performance of 17 3PLs with respect to different aspects through the application of the developed DEA model. Proper benchmarking with respect to strategies and operations of the 3PLs that are recognized as efficient makes it possible for these 3PLs to overcome obstacles and progress at a lower cost. The results show that 3PLs do not have a comprehensive sustainability strategy that is coordinated with an overall vision of the total supply chain. An investigation into the development of a framework with multiple steps for the guidance of 3PLs, as well as the whole supply chain, towards sustainability in the Industry 4.0 era would be a fruitful next study.

Model Supporting Development Decisions by Considering Qualitative–Environmental Aspects

“…In this context, it is important to predict customers' expectations and the environmental impacts resulting from these expectations [3,10]. This process seems to be indispensable for reducing unfavorable climate changes, which have increased with the development of production (Industry 4.0) [12,13]. Hence, it is necessary to propose a model for the prediction of pro-quality decisions while considering sustainable development.…”

“…From a pro-environment standpoint, the quality level should include environmental aspects, i.e., the consideration of all organization activities and products that can impact the environment [11]. However, the dynamics of the market, including the industrialization of enterprises (Industry 4.0) [12,13], have generated the need for the sustainable development of products ahead of the competition [1]. This requires the prediction of product quality level and its possible impact on the natural environment.…”

A review of network DEA models based on slacks‐based measure: Evolution of literature, applications, and further research direction

“…(2021), and Pishdar et al. (2021), proposed the inclusion of intermediate variables in the objective function. It was observed that in the last six years, there were publications that considered this point, with the increasing presence of models with intermediate variables in the efficiency measure, which may indicate a line for refinement in future research.…”

Business transformation through sustainability based on Industry 4.0

“…The "systemic vision" axis enables the identification and holistic analysis of the company's strengths and eventual economic, social, and environmental vulnerabilities (Verhulst and Brenden, 2021), while the "stakeholders" axis brings elements that strengthen the company's relationships with members of the value chain, with shareholders, with the internal public, and with society in general, by providing transparency regarding sustainable corporate initiatives (Satyro et al, 2021). In turn, the "governance" axis brings elements that help both in decision making in a reliable way and in monitoring the use of resources and carrying out activities focused on sustainability issues, contributing to the fulfillment of the company's goals (Pishdar et al, 2021). Although these elements are important in the company's transition to CS, the "governance" axis showed an imbalance among the TBL dimensions, with fewer elements addressing the social aspect.…”