IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v90y2016icp177-195.html
   My bibliography  Save this article

Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach

Author

Listed:
  • Govindan, Kannan
  • Chaudhuri, Atanu

Abstract

This paper analyses the interrelationships between risks faced by third party logistics service providers (3PLs) in relation to one of its customers using DEMATEL. Novel analysis of both within and between risk categories and generation of threshold value to prioritize risks generate useful insights. Results show that arms-length relationship between the customer and the 3PLs has strong influence on other risks and there is a need for collaborative relationships between 3PLs and its customers. Moreover, analysis indicates that the 3PLs need to improve internal processes related to quality management, flexibility of its operations and also geographical coverage of their services.

Suggested Citation

  • Govindan, Kannan & Chaudhuri, Atanu, 2016. "Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 177-195.
    • Handle: RePEc:eee:transe:v:90:y:2016:i:c:p:177-195
    DOI: 10.1016/j.tre.2015.11.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554515002215
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2015.11.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sudeep Kumar Pradhan & Srikanta Routroy, 2014. "Development of supply chain risk mitigation strategy: a case study," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 7(4), pages 359-375.
    2. Li, Gang & Fan, Huan & Lee, Peter K.C. & Cheng, T.C.E., 2015. "Joint supply chain risk management: An agency and collaboration perspective," International Journal of Production Economics, Elsevier, vol. 164(C), pages 83-94.
    3. Jayaram, Jayanth & Tan, Keah-Choon, 2010. "Supply chain integration with third-party logistics providers," International Journal of Production Economics, Elsevier, vol. 125(2), pages 262-271, June.
    4. Ahmadi-Javid, Amir & Seddighi, Amir Hossein, 2013. "A location-routing problem with disruption risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 63-82.
    5. Peng Jia & Kannan Govindan & Tsan-Ming Choi & Sivakumar Rajendran, 2015. "Supplier Selection Problems in Fashion Business Operations with Sustainability Considerations," Sustainability, MDPI, vol. 7(2), pages 1-17, February.
    6. Pfohl, Hans-Christian & Gallus, Philipp & Thomas, David, 2011. "Interpretive structural modeling of supply chain risks," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 55230, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Lai, Kee-hung & Cheng, T. C. E., 2003. "Initiatives and outcomes of quality management implementation across industries," Omega, Elsevier, vol. 31(2), pages 141-154, April.
    8. Rajesh, R. & Pugazhendhi, S. & Ganesh, K. & Muralidharan, C. & Sathiamoorthy, R., 2011. "Influence of 3PL service offerings on client performance in India," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 149-165, March.
    9. Jharkharia, Sanjay & Shankar, Ravi, 2007. "Selection of logistics service provider: An analytic network process (ANP) approach," Omega, Elsevier, vol. 35(3), pages 274-289, June.
    10. S. Prasanna Venkatesan & S. Kumanan, 2012. "Supply chain risk prioritisation using a hybrid AHP and PROMETHEE approach," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 13(1), pages 19-41.
    11. Tang, Christopher S., 2006. "Perspectives in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 103(2), pages 451-488, October.
    12. M.N. Qureshi & Dinesh Kumar & Pradeep Kumar, 2007. "Modeling the logistics outsourcing relationship variables to enhance shippers' productivity and competitiveness in logistical supply chain," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(8), pages 689-714, November.
    13. Govindan, Kannan & Madan Shankar, K. & Kannan, Devika, 2016. "Sustainable material selection for construction industry – A hybrid multi criteria decision making approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1274-1288.
    14. repec:eme:mrn000:01409170710733296 is not listed on IDEAS
    15. R. Rajesh & V. Ravi & R. Venkata Rao, 2015. "Selection of risk mitigation strategy in electronic supply chains using grey theory and digraph-matrix approaches," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 238-257, January.
    16. Aqlan, Faisal & Lam, Sarah S., 2015. "A fuzzy-based integrated framework for supply chain risk assessment," International Journal of Production Economics, Elsevier, vol. 161(C), pages 54-63.
    17. Tang, Ou & Nurmaya Musa, S., 2011. "Identifying risk issues and research advancements in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 133(1), pages 25-34, September.
    18. Danielis, Romeo & Marcucci, Edoardo & Rotaris, Lucia, 2005. "Logistics managers' stated preferences for freight service attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(3), pages 201-215, May.
    19. Panayides, Photis M. & So, Meko, 2005. "Logistics service provider-client relationships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(3), pages 179-200, May.
    20. Ghiani, Gianpaolo & Guerriero, Francesca & Laporte, Gilbert & Musmanno, Roberto, 2003. "Real-time vehicle routing: Solution concepts, algorithms and parallel computing strategies," European Journal of Operational Research, Elsevier, vol. 151(1), pages 1-11, November.
    21. Samir K. Srivastava, 2006. "Logistics and Supply Chain Practices in India," Vision, , vol. 10(3), pages 69-79, July.
    22. Avinash Samvedi & Vipul Jain, 2013. "A study on the interactions between supply chain risk management criteria using fuzzy DEMATEL method," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 18(3), pages 255-271.
    23. Konstantinos Selviaridis & Martin Spring & Vassilios Profillidis & George Botzoris, 2008. "Benefits, Risks, Selection Criteria and Success Factors for Third-Party Logistics Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 10(4), pages 380-392, December.
    24. Jiang, Bin & Reinhardt, Gilles & Young, Scott T., 2008. "BOCOG's outsourcing contracts: The vendor's perspective," Omega, Elsevier, vol. 36(6), pages 941-949, December.
    25. Tsai, Ming-Chih & Lai, Kee-hung & Lloyd, Alison E. & Lin, Hung-Ju, 2012. "The dark side of logistics outsourcing – Unraveling the potential risks leading to failed relationships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 178-189.
    26. Mahesh Chand & Tilak Raj & Ravi Shankar, 2015. "A comparative study of multi criteria decision making approaches for risks assessment in supply chain," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 18(1), pages 67-84.
    27. Nathalie Fabbe-Costes & Marianne Jahre & Christine Roussat, 2008. "Supply chain integration: the role of logistics service providers," International Journal of Productivity and Performance Management, Emerald Group Publishing, vol. 58(1), pages 71-91, December.
    28. Léa A. Deleris & Feryal Erhun, 2011. "Quantitative Risk Assessment in Supply Chains: A Case Study Based on Engineering Risk Analysis Concepts," International Series in Operations Research & Management Science, in: Karl G Kempf & Pınar Keskinocak & Reha Uzsoy (ed.), Planning Production and Inventories in the Extended Enterprise, chapter 0, pages 105-131, Springer.
    29. Barad, M. & Even Sapir, D., 2003. "Flexibility in logistic systems--modeling and performance evaluation," International Journal of Production Economics, Elsevier, vol. 85(2), pages 155-170, August.
    30. Wang, Xiaojun & Chan, Hing Kai & Yee, Rachel W.Y. & Diaz-Rainey, Ivan, 2012. "A two-stage fuzzy-AHP model for risk assessment of implementing green initiatives in the fashion supply chain," International Journal of Production Economics, Elsevier, vol. 135(2), pages 595-606.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nishat Alam Choudhary & Shalabh Singh & Tobias Schoenherr & M. Ramkumar, 2023. "Risk assessment in supply chains: a state-of-the-art review of methodologies and their applications," Annals of Operations Research, Springer, vol. 322(2), pages 565-607, March.
    2. Dong, Qingxing & Cooper, Orrin, 2016. "An orders-of-magnitude AHP supply chain risk assessment framework," International Journal of Production Economics, Elsevier, vol. 182(C), pages 144-156.
    3. Zhao, Na, 2019. "Managing interactive collaborative mega project supply chains under infectious risks," International Journal of Production Economics, Elsevier, vol. 218(C), pages 275-286.
    4. Qazi, Abroon & Dickson, Alex & Quigley, John & Gaudenzi, Barbara, 2018. "Supply chain risk network management: A Bayesian belief network and expected utility based approach for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 196(C), pages 24-42.
    5. Kayakutlu, Gulgun & Buyukozkan, Gulcin, 2011. "Assessing performance factors for a 3PL in a value chain," International Journal of Production Economics, Elsevier, vol. 131(2), pages 441-452, June.
    6. Kauppi, Katri & Longoni, Annachiara & Caniato, Federico & Kuula, Markku, 2016. "Managing country disruption risks and improving operational performance: risk management along integrated supply chains," International Journal of Production Economics, Elsevier, vol. 182(C), pages 484-495.
    7. Oliva, Fábio Lotti, 2016. "A maturity model for enterprise risk management," International Journal of Production Economics, Elsevier, vol. 173(C), pages 66-79.
    8. Sreedevi, R. & Saranga, Haritha, 2017. "Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation," International Journal of Production Economics, Elsevier, vol. 193(C), pages 332-342.
    9. Fan, Huan & Li, Gang & Sun, Hongyi & Cheng, T.C.E., 2017. "An information processing perspective on supply chain risk management: Antecedents, mechanism, and consequences," International Journal of Production Economics, Elsevier, vol. 185(C), pages 63-75.
    10. Muhammad Junaid & Ye Xue & Muzzammil Wasim Syed & Ji Zu Li & Muhammad Ziaullah, 2019. "A Neutrosophic AHP and TOPSIS Framework for Supply Chain Risk Assessment in Automotive Industry of Pakistan," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    11. Chih-Hung Hsu & Ru-Yue Yu & An-Yuan Chang & Wan-Ling Liu & An-Ching Sun, 2022. "Applying Integrated QFD-MCDM Approach to Strengthen Supply Chain Agility for Mitigating Sustainable Risks," Mathematics, MDPI, vol. 10(4), pages 1-41, February.
    12. Venkatesh, V.G. & Rathi, Snehal & Patwa, Sriyans, 2015. "Analysis on supply chain risks in Indian apparel retail chains and proposal of risk prioritization model using Interpretive structural modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 153-167.
    13. Huu Tuyen Duong & Gilles Paché, 2015. "Intégration informationnelle et relationnelle au sein de la dyade chargeur / PSL : une exploration dans le contexte vietnamien," Post-Print hal-01438572, HAL.
    14. Gerda Žigienė & Egidijus Rybakovas & Rimgailė Vaitkienė & Vaidas Gaidelys, 2022. "Setting the Grounds for the Transition from Business Analytics to Artificial Intelligence in Solving Supply Chain Risk," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    15. Seyyed Mohammad Seyyed Alizadeh Ganji & Mohammad Hayati, 2016. "Identifying and Assessing the Risks in the Supply Chain," Modern Applied Science, Canadian Center of Science and Education, vol. 10(6), pages 1-74, June.
    16. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    17. Ghadimi, Pezhman & Donnelly, Oisin & Sar, Kubra & Wang, Chao & Azadnia, Amir Hossein, 2022. "The successful implementation of industry 4.0 in manufacturing: An analysis and prioritization of risks in Irish industry," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    18. Rika Ampuh Hadiguna, 2012. "Decision support framework for risk assessment of sustainable supply chain," International Journal of Logistics Economics and Globalisation, Inderscience Enterprises Ltd, vol. 4(1/2), pages 35-54.
    19. Müller, Daniel & Nagi, Ayman & Schröder, Meike, 2022. "Supply chain risk management in crisis situations," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 439-468, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    20. Raka, Chatchai & Liangrokapart, Jirapan, 2015. "Supply Chain Risk Management: A Case Study in Thailand," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg Internationa, volume 20, pages 557-580, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:90:y:2016:i:c:p:177-195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.