Benchmarking the interactions among barriers in third-party logistics implementation

Abstract

Purpose – The purpose of this paper is to analyze the interaction among some of the major barriers that may hinder the implementation of third-party logistics (TPL) in manufacturing industries. Design/methodology/approach – This paper uses an interpretive structural modeling (ISM) methodology to analyze the interactions among the barriers. Findings – It is beneficial for the management of any firm to be aware of significant barriers and to diagnose those that could be integral to the organization's future survival. Many works have focused on identifying barriers for TPL implementation, but a model for such barriers is lacking. This paper attempts to develop a model for the barriers using an ISM methodology and analyzes the mutual interactions among the barriers. The model differentiates between the barriers so that driving barriers, which can intensify other barriers, and dependent barriers are identified separately. Originality/value – In this research, eight barriers are considered. Interactions between the barriers are evaluated with the help of the ISM matrix. Of the eight barriers, three barriers, including the lack of application and knowledge of advanced information technology, congested roadways and ports, and fear of employees of the firm, demonstrate both strong driving power and strong dependence power, as illustrated in the MICMAC analysis.