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Defining and calibrating performance indicators of a 4PL in the chemical industry in Brazil

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  • Krakovics, Fabio
  • Eugenio Leal, José
  • Mendes Jr., Paulo
  • Lorenzo Santos, Rafael

Abstract

Recent developments in logistics have led to the use of third-party-logistics firms in different industries. However, outsourcing the logistics operation to a 3PL requires close monitoring of the logistic system performance, and also of the service level effectively delivered to customers. Issues related to the concept, definition and design of a quantitative system to measure such performance are discussed in this paper, and the experience of building a performance evaluation system is also described. The system was designed from the point of view of a 4PL firm contracted by a chemical company in Brazil to contract and monitor the work of a 3PL. The authors have developed a method to calibrate an S-curve used to evaluate the performance indicators. In the application case, the design of a set of indicators to evaluate the services of this 4PL firm in the Chemical industry in Brazil is described. The calibration method was applied to help the evaluation process by the 4PL firm in practice, and showed a great potential for application in the whole segment of logistics operators and companies.

Suggested Citation

  • Krakovics, Fabio & Eugenio Leal, José & Mendes Jr., Paulo & Lorenzo Santos, Rafael, 2008. "Defining and calibrating performance indicators of a 4PL in the chemical industry in Brazil," International Journal of Production Economics, Elsevier, vol. 115(2), pages 502-514, October.
    • Handle: RePEc:eee:proeco:v:115:y:2008:i:2:p:502-514
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    References listed on IDEAS

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    Cited by:

    1. Hans-Joachim Schramm & Carolin Nicole Czaja & Michael Dittrich & Matthias Mentschel, 2019. "Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future," Logistics, MDPI, vol. 3(1), pages 1-17, February.
    2. 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.
    3. Tim Gruchmann & Nadine Pratt & Jan Eiten & Ani Melkonyan, 2020. "4PL Digital Business Models in Sea Freight Logistics: The Case of FreightHub," Logistics, MDPI, vol. 4(2), pages 1-14, May.
    4. Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2021. "A time-expanded network reduction matheuristic for the logistics service network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    5. Garcia, Fernanda A. & Marchetta, Martin G. & Camargo, Mauricio & Morel, Laure & Forradellas, Raymundo Q., 2012. "A framework for measuring logistics performance in the wine industry," International Journal of Production Economics, Elsevier, vol. 135(1), pages 284-298.
    6. Rafal Haffer, 2021. "Supply Chain Performance Measurement System of Logistics Service Providers vs. Supply Chain Performance: A Conceptual Framework," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 78-97.
    7. Yeung, Kwong & Zhou, Honggeng & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The impact of third-party logistics providers' capabilities on exporters' performance," International Journal of Production Economics, Elsevier, vol. 135(2), pages 741-753.
    8. Büyüközkan, Gülçin & Feyzioglu, Orhan & Sakir Ersoy, Mehmet, 2009. "Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral," International Journal of Production Economics, Elsevier, vol. 121(1), pages 112-120, September.
    9. Brint, Andrew & Genovese, Andrea & Piccolo, Carmela & Taboada-Perez, Gerardo J., 2021. "Reducing data requirements when selecting key performance indicators for supply chain management: The case of a multinational automotive component manufacturer," International Journal of Production Economics, Elsevier, vol. 233(C).
    10. Kayakutlu, Gulgun & Buyukozkan, Gulcin, 2011. "Assessing performance factors for a 3PL in a value chain," International Journal of Production Economics, Elsevier, vol. 131(2), pages 441-452, June.
    11. Braz, Renata Gomes Frutuoso & Scavarda, Luiz Felipe & Martins, Roberto Antonio, 2011. "Reviewing and improving performance measurement systems: An action research," International Journal of Production Economics, Elsevier, vol. 133(2), pages 751-760, October.

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