Navigating Uncertainties: A Holistic Framework for Identifying and Assessing Risks in Third-Party Logistics (3PL)
Astha Singh,
Guide: Dr. Akhtar Mohammad, Professor
Bachelor OF BUSINESS ADMINISTRATION
IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT
School Of Business
Galgotias University
Abstract
Purpose: To review the extant literature on 3PL risk management (SCRM, including risk identification, assessment, treatment, and monitoring), developing a comprehensive definition and conceptual framework; to evaluate prior theory use; and to identify future research directions. Additionally, our framework emphasizes the importance of aligning performance metrics with risk objectives, facilitating ongoing monitoring and evaluation of 3PL partnerships. By establishing clear performance benchmarks and feedback mechanisms, organizations can promptly identify emerging risks and implement corrective actions as necessary.
Methodology: A systematic literature review of couple of articles (published 2000-2016) based on descriptive, thematic, and content analysis. Drawing from extensive literature review and industry best practices, our framework integrates multiple dimensions of risk identification and evaluation into a cohesive methodology. We propose a structured approach that encompasses both qualitative and quantitative techniques, enabling organizations to comprehensively assess risks across various stages of the 3PL relationship lifecycle. Through the application of our holistic framework, organizations can enhance their ability to navigate uncertainties in 3PL relationships, fostering resilience and competitiveness in today's dynamic business environment.
Findings: There has been a considerable focus on identifying risk types and proposing risk mitigation strategies. Research has emphasised organisational responses to 3PL risks.
Research implications: A broad, contemporary understanding of 3PL risk management is provided; leading to a conceptual framework. The research agenda guides future work towards maturation of the discipline. Practical implications: Managers are encouraged to adopt a holistic approach to risk management. Guidance is provided on how to select appropriate risk treatment actions according to the probability and impact of a risk. Key components of our framework include risk categorization, stakeholder engagement, scenario analysis, and performance metrics alignment. By systematically categorizing risks according to their nature and impact, organizations can prioritize mitigation efforts and allocate resources effectively. Stakeholder engagement ensures that diverse perspectives are considered in the risk assessment process, enhancing its accuracy and relevance. Furthermore, scenario analysis allows for the exploration of potential future events and their implications on 3PL operations, enabling proactive risk management strategies.
Keywords: 3PL, Risk management, Systematic literature review (SLR), theoretical approach.
