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Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach
Institution:1. Center for Sustainable Engineering Operations Management, Department of Technology and Innovation, University of Southern Denmark, Campusvej 55, Odense, Denmark;2. Center for Industrial Production, Aalborg University, A.C. Meyers Vænge 15, Copenhagen 2450, Denmark;1. School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China;2. Department of Management, University of Bristol, Bristol BS8 1TZ, UK;1. Department of Mathematics and Logistics, Jacobs University, 28759 Bremen, Germany;2. Funk Gruppe GmbH, 20354 Hamburg, Germany;1. School of Transportation and Logistics, Southwest Jiaotong University, Chengdu 610031, China;2. Department of Industrial and Systems Engineering, National University of Singapore, 1 Engineering Drive 2, 117576, Singapore;3. National United Engineering Laboratory of Integrated and Intelligent Transportation, Chengdu 610031, China;1. Research Institute of Business Analytics & Supply Chain Management, College of Management, Shenzhen University, Shenzhen 518060, China;2. Edward P. Fitts Department of Industrial and Systems Engineering, North Carolina State University, Raleigh, NC 27695-7906, USA;3. College of Information Science and Engineering, State Key Laboratory of Synthetical Automation for Process Industries, Northeastern University, Shenyang, Liaoning 110819, China;1. Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110167, China;2. State Key Laboratory of Synthetical Automation for Process Industries, Northeastern University, Shenyang 110819, China
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.
Keywords:Interrelations between risks  3PLs  DEMATEL  Supply chain collaboration  Emerging economy  Supply chain risk management  Logistics risk management
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