IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v11y2023i19p4203-d1255758.html
   My bibliography  Save this article

Sustainable Evaluation of Major Third-Party Logistics Providers: A Framework of an MCDM-Based Entropy Objective Weighting Method

Author

Listed:
  • Chia-Nan Wang

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan)

  • Ngoc-Ai-Thy Nguyen

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan
    Faculty of Business, FPT University, Ho Chi Minh 70000, Vietnam)

  • Thanh-Tuan Dang

    (Department of Logistics and Supply Chain Management, Hong Bang International University, Ho Chi Minh 72320, Vietnam)

Abstract

This study aims to efficiently assist decision makers in evaluating global third-party logistics (3PL) providers from the perspectives of economic, social, and environmental sustainability and explore the determinants of the 3PL providers’ performance. In doing so, an integrated framework for an MCDM-based entropy objective weighting method is proposed for the first time in a logistics industry assessment. In the first stage, the entropy method defines the weight of the decision criteria based on real data collected from the top 15 global 3PL providers. This study lists the prominent quantitative evaluation criteria, taking into consideration the sustainability perspective. The advantage of the entropy method is that it reduces the subjective impact of decision makers and increases objectivity. In the second stage, the measurement of alternatives and ranking according to compromise solution (MARCOS) method is used to rank the 3PL providers according to their performance on the basis of these criteria. Sensitivity analysis and comparative analysis are implemented to validate the results. The current research work is devoted to the emerging research topic of sustainable development in the logistics industry and supply chain management. The proposed model identifies key performance indicators in the logistics industry and determines the most efficient 3PL providers. Consequently, the results show that the carbon dioxide emissions (20.50%) factor is the most important criterion for the competitiveness of global logistics companies. The results of this study can help inefficient 3PL providers make strategic decisions to improve their performance. However, this study only focuses on 15 companies due to a lack of data. The integration of these two techniques provides a novel way to evaluate global 3PL providers which has not been addressed in the logistics industry to date and as such remains a gap that needs to be investigated.

Suggested Citation

  • Chia-Nan Wang & Ngoc-Ai-Thy Nguyen & Thanh-Tuan Dang, 2023. "Sustainable Evaluation of Major Third-Party Logistics Providers: A Framework of an MCDM-Based Entropy Objective Weighting Method," Mathematics, MDPI, vol. 11(19), pages 1-27, October.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:19:p:4203-:d:1255758
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/11/19/4203/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/11/19/4203/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alfred L. Guiffrida & Pratim Datta & Asoke Dey & Paul LaGuardia & Mahesh Srinivasan, 2011. "Building sustainability in logistics operations: a research agenda," Management Research Review, Emerald Group Publishing Limited, vol. 34(11), pages 1237-1259, October.
    2. Željko Stević & Nikola Brković, 2020. "A Novel Integrated FUCOM-MARCOS Model for Evaluation of Human Resources in a Transport Company," Logistics, MDPI, vol. 4(1), pages 1-14, February.
    3. Asoke Dey & Paul LaGuardia & Mahesh Srinivasan, 2011. "Building sustainability in logistics operations: a research agenda," Management Research Review, Emerald Group Publishing Limited, vol. 34(11), pages 1237-1259, October.
    4. Qing Wang & Yufeng Liu & Xudong Zhang & Huicheng Fu & Sen Lin & Shengyuan Song & Cencen Niu, 2020. "Study on an AHP-Entropy-ANFIS Model for the Prediction of the Unfrozen Water Content of Sodium-Bicarbonate-Type Salinization Frozen Soil," Mathematics, MDPI, vol. 8(8), pages 1-20, July.
    5. Asoke Dey & Paul LaGuardia & Mahesh Srinivasan, 2011. "Building sustainability in logistics operations: a research agenda," Management Research Review, Emerald Group Publishing Limited, vol. 34(11), pages 1237-1259, October.
    6. Chia-Nan Wang & Ngoc-Ai-Thy Nguyen & Thanh-Tuan Dang & Chen-Ming Lu, 2021. "A Compromised Decision-Making Approach to Third-Party Logistics Selection in Sustainable Supply Chain Using Fuzzy AHP and Fuzzy VIKOR Methods," Mathematics, MDPI, vol. 9(8), pages 1-27, April.
    7. Miomir Stanković & Željko Stević & Dillip Kumar Das & Marko Subotić & Dragan Pamučar, 2020. "A New Fuzzy MARCOS Method for Road Traffic Risk Analysis," Mathematics, MDPI, vol. 8(3), pages 1-18, March.
    8. Amir Karbassi Yazdi & Thomas Hanne & Juan Carlos Osorio Gómez & Jorge Luis García Alcaraz, 2018. "Finding the Best Third-Party Logistics in the Automobile Industry: A Hybrid Approach," Mathematical Problems in Engineering, Hindawi, vol. 2018, pages 1-19, November.
    9. Seong-Jong Joo & Gawon Yun, 2017. "Examining the influence of information system ratings on the performance of 3PL companies," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 26(3), pages 316-328.
    10. Şengül, Ümran & Eren, Miraç & Eslamian Shiraz, Seyedhadi & Gezder, Volkan & Şengül, Ahmet Bilal, 2015. "Fuzzy TOPSIS method for ranking renewable energy supply systems in Turkey," Renewable Energy, Elsevier, vol. 75(C), pages 617-625.
    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. Snežana Tadić & Mladen Krstić & Milovan Kovač, 2023. "Assessment of city logistics initiative categories sustainability: case of Belgrade," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1383-1419, February.
    2. Maria Richert & Marek Dudek, 2023. "Risk Mapping: Ranking and Analysis of Selected, Key Risk in Supply Chains," JRFM, MDPI, vol. 16(2), pages 1-30, January.
    3. Vladimir Simic & Ali Ebadi Torkayesh & Abtin Ijadi Maghsoodi, 2023. "Locating a disinfection facility for hazardous healthcare waste in the COVID-19 era: a novel approach based on Fermatean fuzzy ITARA-MARCOS and random forest recursive feature elimination algorithm," Annals of Operations Research, Springer, vol. 328(1), pages 1105-1150, September.
    4. Mladen Krstić & Giulio Paolo Agnusdei & Pier Paolo Miglietta & Snežana Tadić & Violeta Roso, 2022. "Applicability of Industry 4.0 Technologies in the Reverse Logistics: A Circular Economy Approach Based on COmprehensive Distance Based RAnking (COBRA) Method," Sustainability, MDPI, vol. 14(9), pages 1-30, May.
    5. Morteza Yazdani & Dragan Pamucar & Prasenjit Chatterjee & Ali Ebadi Torkayesh, 2022. "“A multi-tier sustainable food supplier selection model under uncertainty”," Operations Management Research, Springer, vol. 15(1), pages 116-145, June.
    6. Rafał Haffer, 2018. "Supply Chain Performance Measurement System Of Logistics Service Providers. A Conceptual Framework And Research Agenda," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 18, pages 85-108.
    7. Chia-Nan Wang & Yu-Chi Chung & Fajar Dwi Wibowo & Thanh-Tuan Dang & Ngoc-Ai-Thy Nguyen, 2023. "Sustainable Last-Mile Delivery Solution Evaluation in the Context of a Developing Country: A Novel OPA–Fuzzy MARCOS Approach," Sustainability, MDPI, vol. 15(17), pages 1-25, August.
    8. Sarfaraz Hashemkhani Zolfani & Ramin Bazrafshan & Fatih Ecer & Çağlar Karamaşa, 2022. "The Suitability-Feasibility-Acceptability Strategy Integrated with Bayesian BWM-MARCOS Methods to Determine the Optimal Lithium Battery Plant Located in South America," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    9. Tan, R.R. & Aviso, K.B. & Ng, D.K.S., 2019. "Optimization models for financing innovations in green energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    10. Hongyi Sun & Bingqian Zhang & Wenbin Ni, 2022. "A Hybrid Model Based on SEM and Fuzzy TOPSIS for Supplier Selection," Mathematics, MDPI, vol. 10(19), pages 1-19, September.
    11. Bo-Rui Yan & Qian-Li Dong & Qian Li & Fahim UI Amin & Jia-Ni Wu, 2021. "A Study on the Coupling and Coordination between Logistics Industry and Economy in the Background of High-Quality Development," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    12. Enrico Massaroni & Alessandra Cozzolino & Mario Calabrese & Ewa Wankowicz & Maura Fiore, 2016. "Reporting di sostenibilit? degli operatori logistici in Europa: analisi degli indicatori," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2016(2), pages 303-334.
    13. Deveci, Muhammet & Cali, Umit & Kucuksari, Sadik & Erdogan, Nuh, 2020. "Interval type-2 fuzzy sets based multi-criteria decision-making model for offshore wind farm development in Ireland," Energy, Elsevier, vol. 198(C).
    14. Wanke, Peter Fernandes & Chiappetta Jabbour, Charbel José & Moreira Antunes, Jorge Junio & Lopes de Sousa Jabbour, Ana Beatriz & Roubaud, David & Sobreiro, Vinicius Amorim & Santibanez Gonzalez‬, Erne, 2021. "An original information entropy-based quantitative evaluation model for low-carbon operations in an emerging market," International Journal of Production Economics, Elsevier, vol. 234(C).
    15. Alkan, Ömer & Albayrak, Özlem Karadağ, 2020. "Ranking of renewable energy sources for regions in Turkey by fuzzy entropy based fuzzy COPRAS and fuzzy MULTIMOORA," Renewable Energy, Elsevier, vol. 162(C), pages 712-726.
    16. Alaa Alden Al Mohamed & Sobhi Al Mohamed, 2023. "Application of fuzzy group decision-making selecting green supplier: a case study of the manufacture of natural laurel soap," Future Business Journal, Springer, vol. 9(1), pages 1-20, December.
    17. Ezbakhe, Fatine & Pérez-Foguet, Agustí, 2021. "Decision analysis for sustainable development: The case of renewable energy planning under uncertainty," European Journal of Operational Research, Elsevier, vol. 291(2), pages 601-613.
    18. Xiaoye Jin & Meiying Li & Fansheng Meng, 2019. "Comprehensive Evaluation of the New Energy Power Generation Development at the Regional Level: An Empirical Analysis from China," Energies, MDPI, vol. 12(23), pages 1-15, December.
    19. Graham, Stephanie & Graham, Byron & Holt, Diane, 2018. "The relationship between downstream environmental logistics practices and performance," International Journal of Production Economics, Elsevier, vol. 196(C), pages 356-365.
    20. Miguel Reyna-Castillo & Alejandro Santiago & Salvador Ibarra Martínez & José Antonio Castán Rocha, 2022. "Social Sustainability and Resilience in Supply Chains of Latin America on COVID-19 Times: Classification Using Evolutionary Fuzzy Knowledge," Mathematics, MDPI, vol. 10(14), pages 1-18, July.

    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:gam:jmathe:v:11:y:2023:i:19:p:4203-:d:1255758. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.