RSUSSH 2020
IN20-115 Environmental Criteria for Third Party Logistics (3PL) Transportation Service Selection towards Green Supply Chain: A Case of Fast Moving Consumer Goods Company
Presenter: Pornpavee Worasubhakorn
Naresuan University, Thailand
Abstract
The increasing in green consideration of customers causes several companies to incorporate environmental practices into their supply chain aiming to increase competitiveness in the market. The company attention has been extended to environmental performance of outsourcing services from third party logistics (3PL) provider. However, there is a lack of environmental criteria in 3PL transportation service selection. Therefore, this research aims to fulfill this gap by developing environmental criteria in 3PL transportation service selection for a fast-moving consumer goods (FMCG) company in Thailand to promote sustainable performance. The research intends to conduct the analytic hierarchy process (AHP) to identify and prioritize criteria regarding the research aim. Three experts performed pair-wise comparison to weight the importance of criteria. The result indicated that “vehicle use” with 26.9% of importance criteria is the highest importance over the others, whereas “environmental control” (9.2%) is the least important criteria for the case study. The outcomes can support decision making process of FMCG company in 3PL selection and service improvement process of 3PL providers. The importance of criteria can enhance sustainable performance of company’s supply chain.
Citation format:
Worasubhakorn, P., & Soratana, K.. (2020). Environmental Criteria for Third Party Logistics (3PL) Transportation Service Selection towards Green Supply Chain: A Case of Fast Moving Consumer Goods Company. Proceeding in RSU International Research Conference, May 1, 2020. Pathum Thani, Thailand.QUESTIONS & ANSWERS
What are the limitations of this research?
Since "vehicle use" shows the highest importance, how a company select a proper 3PL? I mean what criteria of the selection process to judge that a 3PL show an environmentally friendly performance?
Dear สุมามาลย์ ปานคำ,
Research limitations:
1. This research used one FMCG company as a case study. The opinions on 3PL transportation service selection criteria were mainly from buyer’s point of view.The study of buyer and 3PL perspective on the selection criteria should be conducted in the future to obtain and understand the requirements of both parties.
2. The accessible limitation of the case study within the FMCG industry was occurred in this research. It is suggested that the various FMCG companies in Thailand are necessary to confirm the judgments on environmental criteria in 3PL selection within industry. Thus, the result will be useful to improve the environmental practices within industry and their 3PLs.
Best regards,
Pornpavee
Dear TANPAT KRAIWANIT,
According to the results in the proceeding, the experts ranked “reducing empty running” as the most important sub criterion in a main criterion “vehicle use” in 3PL selection process. This could be showed that the maximization of vehicle capacity and sharing economy of 3PLs lead them to minimize fuel inefficiency, which results of less traffic congestion and emission. Moreover, 3PLs can set the lower cost of services, while improving fuel efficiency. So, this can help the case company to achieve their economic and environmental goals.
Best regards,
Pornpavee