An integrated model to identify and classify the key criteria and their role in the assessment of 3PL services providers

Abstract

Purpose The purpose of this paper is to develop an integrated model, in order to identify and classify, key criteria, and to study their role in the selection process of third party logistics (3PLs) services providers for shippers' logistics need. Design/methodology/approach In this paper, an integrated model using interpretive structural modeling (ISM) and FMICMAC analysis has been developed to identify and classify the key selection criteria of 3PL services providers, typically identified by many researchers and practiced by the shippers for effective supply chain management. The key criteria are also modeled to find their role and mutual influence in the selection of 3PL services providers. Findings The key finding of this modeling helps to identify and classify the criteria, which may be further used, to identify the potential 3PL services provider. Integrated model reveals, criteria such as information technology capability; size and quality of fixed assets and quality of management as independent criteria, whereas criteria such as compatibility, long‐term relation and reputation as dependent criteria. Criterion namely flexibility in operation and delivery is found to be an autonomous criterion. The important criteria like quality of service, information sharing and trust, geographical spread and range of services, delivery performance, operational performance, financial stability, optimum cost, and surge capacity are found as the linkage criteria. Integrated model also establishes the direct and indirect relationship among various criteria, which plays a significant role in the selection process. Originality/value The research provide an integrated model using ISM and FMICMAC to identify and classify various key criteria required for the selection of 3PL services providers. The various key criteria have been grouped under four broad classification, namely, dependent criteria, independent criteria, autonomous criteria and linkage criteria based on their driving and dependence power, deduced from fuzzy reachability value. The model helps in the identification, classification and selection of key criteria along with their behavior, thus this research will help logistics managers to select right criteria for the selection of potential 3PL services providers for their logistics need.