Environmental Sustainability of Logistics Service Providers: An ANP-QFD Approach

Purpose – The study aims to propose a methodology with systematic metrics for logistics service providers (LSPs) to develop their environmental sustainability performance in the context of green supply chain management. Design/methodology/approach – An integrated analytical approach which combines Analytical Network Process (ANP) with Quality Function Deployment (QFD) is proposed to develop LSPs’ environmental sustainability performance. In the approach, QFD is used to translate customer requirements for ‘green’ concerns into multiple criteria for LSP’s design requirements. ANP is used to analyze the inter-relationships among the various customer requirements and design requirements. Findings – The effectiveness of the proposed approach is demonstrated by applying it to a global LSP. A case-study shows how the proposed “ANP-QFD” technique can be deployed to understand customers’ expectation for environment management and develop tactics and measures with the aim to achieve the desirable outcome for LSPs’ environmental sustainability performance. To cite this article: Lam, J.S.L. and Dai, J. 2015. Environmental sustainability of logistics service provider: an ANP-QFD approach, International Journal of Logistics Management, Vol. 26(2), pp. 313 – 333. DOI: 10.1108/IJLM-08-2013-0088 Practical implications – Firms that emphasize sustainability as a competitive priority will benefit by communicating sustainability efforts to customers. Therefore, “ANP-QFD” is an integrative method which helps develop LSPs’ environmental sustainability performance by enabling logistics managers incorporate the ‘voice’ of customers for environmental concerns into their decision-making process. The study demonstrates how to develop LSPs to be greener in order to realize the requirements of green supply chains. The proposed integrated approach can also be applied in other decision-making scenarios for effective green supply chain management. Originality/value – Various approaches that can deal with multiple and conflicting criteria have been adopted for logistics service provider assessment in the literature. However, they fail to include the impact of business objectives and the requirements of company stakeholders (customer in this study) in the identification of performance criteria for LSP. They also did not incorporate the environmental sustainability perspective. This paper contributes to the emerging research topic of environmental sustainability in logistics and supply chains by tackling these inadequacies in the literature. The study facilitates LSPs and the supply chains they serve in achieving better economic and environmental performance, thus leading to truly sustainable outcomes.