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Influence of non-price and environmental sustainability factors on truckload procurement process

journal contribution
posted on 2023-06-09, 03:28 authored by R Jothi Basu, Nachiappan SubramanianNachiappan Subramanian, Angappa Gunasekaran, P L K Palaniappan
In practice, manufacturers select their logistics service providers mainly based on total procurement cost. In addition to this, they will also consider allied services such as cargo insurance, electronic documentation, even though practitioners emphasize importance of other factors such as on time delivery and carbon emissions. This study proposes sustainable decision model which includes various non-price and environmental sustainability factors and analyzes their influences in allocating typical routes to the carriers, while establishing a truck load contract. Multiple case studies are carried out in automotive and logistics companies to prioritize factors using Analytic Hierarchy Process (AHP). Factor prioritization is used to formulate carrier assignment problem as a multiple objective optimization model using the influencing factors identified and applies a heuristic methodology to derive the near-optimal solution. This study reveals that carbon footprint, route optimization and on time delivery will have huge impact on procurement decision.

History

Publication status

  • Published

Journal

Annals of Operations Research

ISSN

0254-5330

Publisher

Springer Verlag

Issue

2

Volume

250

Page range

363-388

Department affiliated with

  • Business and Management Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2016-10-13

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