The process of selecting logistics service provider from the perspective of the sustainable supply chain management

Abstract

Supply chains include a large number of members, for example suppliers, manufacturers, intermediaries, logistics service providers (hereafter LSPs) and final customers. Manufacturers very often deal only with their core business and ancillary activities such as transport, storage etc. are outsourced by external entities (LSPs). Supply chain sustainability is the management of environmental, social and economic impacts throughout the lifecycles of goods and services. This concept is currently very popular and companies are trying to achieve it. If companies want to follow sustainable supply chain strategy, they have to choose LSPs in accordance with the concept of sustainable supply chain management. The aim of this article is to define an appropriate procedure for selecting logistics service provider with respect to a sustainable supply chain strategy. The selected multiple-criteria decision-making method (technique for order of preference by similarity to ideal solution) will be used for selecting LSP and the criteria for selecting LSP will be defined using literature search in accordance with the concept of sustainable supply chain management. In this case there will be used standards of Global Reporting Initiative for sustainability reporting. The LSP selection procedure will be presented in a case study.