1. Introduction
The term “cold supply chain” refers to a process in which all of the operations involved, from raw material storage through to final product distribution, are temperature controlled. An increase in the volume of imported meat and other related products and exported seafood are the main factors has led to the good performance of cold chain logistics service providers. Due to the instability of the COVID-19 pandemic, more and more customers are choosing to use the online market, boosting the demand for cold storage for food and other essential items. However, the driving force behind the cold logistics industry is not only that but also special healthcare products, most notably, vaccines against COVID-19 and other vaccines in the future. In recent years, Vietnam’s logistics has made positive changes as more and more manufacturing enterprises have successfully applied cold supply chains to production [
1]. There has been more focus on food preservation, transportation, and storage. Enterprises have moved to build, expand, and upgrade cold storage systems to meet their storage requirements. The demand for cold storage rental services is also more than before. Thanks to improving the efficiency of the cold supply chains, businesses have reduced waste, improved productivity, as well as competitiveness in the domestic and international markets. Market analysts expect that Vietnam’s logistics industry will experience more favorable steps in the coming years, along with the important role of cold supply chains. The country’s cold chain logistics is expected to reach a value of 295 million USD by 2025, with a growth rate of 12% per year [
2].
Currently, Vietnam is still a country with significant advantages in agricultural, forestry, and fishery production, with several export commodities ranking at the top of the world market in terms of quantity and varieties. Vietnam’s agriculture, in particular, relies heavily on the cold chain to maintain its shift from a subsistence-based economy to a top exporter of agricultural products [
3]. However, many businesses are aware of a paradox, i.e., domestic logistics costs are frequently higher than those of imported goods. The fundamental reason for this and the problem in Vietnam is that very few domestic firms use cold chains in their production. From the supply of raw materials for production to the distribution of goods to customers, goods have to pass through too many intermediaries, increasing transaction costs and selling prices [
4]. The cold chain plays a very important role in the distribution and pricing of a business’s products. Thanks to this system, goods and materials of enterprises can be transported to the right place where customers need on-time delivery with the lowest cost. The cold chain reduces the loss of goods to the lowest level, taking advantage of the internal advantages of the business (such as capital) or the cold storage partners (i.e., transportation, warehousing, human resources) to form a supply chain with high-quality standards. In addition to key markets such as urban areas and big cities, cold supply chains help goods reach more customers through the arrangement of retail networks scattered throughout potential markets such as in rural areas, villages, mountainous areas, or islands—where the demand is high, but the supply is lacking.
The cold supply chain will become the competitive potential of Vietnamese enterprises in all markets. However, some domestic production and distribution corporations are still hesitant to invest in warehouses because they are costly, and lack administrative personnel, who are highly qualified with expertise in goods preservation and temperature control [
1]. Moreover, the location of the warehouse is also a significant factor that determines transportation costs for a business. Allocating and building warehouses becomes a difficult problem for businesses, taking more time and adding to costs. In addition, not all enterprises have enough resources to invest in many primary warehouses. Thus, finding a solution to satisfy all requirements is what businesses are looking for today. Among solutions, choosing third-party logistics (3PL) cold chain suppliers to carry out the transportation and distribution of a business’s cold supply chain is a practical solution that helps reduce transportation costs and losses for businesses. However, research on Vietnam’s cold supply chain has mainly been unorganized; the sector lacks modern supply chain practices, are not well researched in the Vietnamese scenario, especially, sustainable 3PL selection for the cold supply chain is totally lacking.
Choosing the most suitable 3PL in the cold chain context, or so-called cold chain logistics service providers (CLPs), from the available lot is, therefore, of strategic importance for any organization aiming to achieve an effective and sustainable cold supply chain. The selection process is regarded as a complicated multi-criteria decision making (MCDM) problem as it involves various criteria according to the requirements and specifications of the outsourcing firm [
5]. Considering the sustainability concept with the various dimensions involved, MCDM approaches are effective and practical strategies for analyzing various criteria and assisting specialists and managers in balancing and weighing different elements in order to simplify and clarify managerial decisions [
6]. Using MCDM techniques allows for a clear understanding of the impact of subjective factors on the final ranking of alternatives and provides insight into the priorities and sensitivities of the various stakeholders. Important ideas for using MCDM approaches include handling complicated challenges with few resources and a poor data system [
7]. Moreover, in real-world applications and decision making, the selection is further complicated by the existence of uncertainty which is an unavoidable feature due to the vagueness of human judgments and imprecise information. Unquantifiable, incomplete, and non-accessible information, as well as partial ignorance, are examples of imprecise sources [
8]. In this direction, the two major methodologies for incorporating uncertainty and ambiguity into the evaluation process are fuzzy sets theory [
9] and grey systems theory [
10]. Crisp or conventional methodologies are less effective in handling imprecision or vagueness, while fuzzy sets theory and grey systems theory provide a useful paradigm for analyzing systems with imprecise data and successfully dealing with uncertainty.
In view of the above discussion, the following research objectives for this present study are generated:
To understand and identify the evaluation criteria responsible for the feasible and sustainable implementation of the CLP in a developing country’s perspective.
To determine the most sustainable CLP in Vietnam, a CLP that has employed sustainable practices in its procedures.
In order to achieve these objectives, we apply a grey-based multi-criteria method for the evaluation and selection of CLPs. The method is a two-stage MCDM framework that integrates the grey analytic hierarchy process (G-AHP) and the grey complex proportional assessment (G-COPRAS). A case study in Vietnam is deliberated to exhibit the presented framework’s applicability. Initially, evaluation criteria are identified through a literature review and experts’ opinions to implement the MCDM approach. The G-AHP is used for obtaining the weights of evaluation criteria. Finally, G-COPRAS is applied for ranking the CLP alternatives.
The remainder of the paper is structured as follows: In
Section 2, we provide a literature review for the applications of MCDM methods in the area of 3PL selection, selecting CLPs, and research gaps; in
Section 3, primarily, we explain the methodologies applied to the case study attempted in this work; in
Section 4, the case illustration is described and the results of the method are discussed; in
Section 6, the comparative analysis is conducted to check the robustness of the applied integrated method; in
Section 6, we further discuss the managerial implications of the present work; in
Section 7, we include concluding remarks as well as recommendations for future study.
6. Research Implications
The research findings were discussed with experts to analyze the issues related to sustainability-focused CLP initiatives and there was good agreement with the results. In this sense, this study has several beneficial implications for managers who both outsource and offer logistics activities, stakeholders, as well as academicians, as follows:
For managers who intend to outsource their cold logistics activities, this study reveals some challenges in evaluating and selecting the right logistics providers for sustainability in the cold supply chain context, which has managerial implications for managers to support their businesses while remaining competitive in the market. Especially for a developing country, sustainable 3PL decisions have become necessary as organizations are aware of society and environment protection and increasingly compete on environmental, economic, and social supply chain capabilities. Important criteria and dimensions of criteria related to CLP selection have been recognized. The proper understanding of these criteria and dimensions can help in managing the challenges or barriers in developing sustainability-focused CLP selection criteria and evaluation decisions. All criteria considered in this research are helpful in addressing various challenges among organizations in developing sustainability aspects in 3PL-related decisions.
From the academic point of view, this study presents an integrated approach based on the G-AHP and G-COPRAS methods for CLP selection under limited or no quantitative information. Expert committees and grey theory are particularly suitable to address the challenge of assessing sustainability practices while minimizing the effects of imprecise or missing data. The G-AHP successfully provided consistent criteria ratings, whereas the G-COPRAS generates alternative rankings based on utility degree in the form of percentages. The comparative analysis will allow practitioners to test the observation stability.
Further, from the presented case study, this study provides a scientific means for managers who provide their logistics services in the cold supply chain to determine their strengths and weaknesses and to also improve their sustainable processes. The important benefit that this study offers is the development of evaluation criteria using literature and feedback from experts. For the whole society in the supply chain context, applying a comprehensive selection method (as presented in this paper based on G-AHP and G-COPRAS methods) can make the supply chain more transparent for internal and external stakeholders, therefore, helping businesses gain more accountability and decrease their vulnerability.
7. Conclusions and Future Studies
Outsourcing cold chain logistics services is a growing trend that brings businesses a number of undeniable benefits. Specifically, CLPs assist businesses in the cold supply chain in Vietnam and many other countries in thriving and ensuring a more efficient goods distribution process and a complete supply chain that can meet the criteria of sustainable development (service and product quality, technology, environmentally friendly innovations, etc.) to satisfy customers’ requirements. Thus, choosing a suitable CLP is a vital strategic decision. In this paper, a grey-based MCDM method for CLP selection in a developing country is presented. The suggested method allows the G-AHP to determine the weights of the assessment criteria and subsequently the G-COPRAS to rank the alternatives. A case study in Vietnam is used to demonstrate the reliability of the suggested integrated framework. Fifteen evaluation criteria were chosen from the literature after consulting with industry experts. Product quality, logistics costs, innovation and effectiveness of cold chain processes, customer experience, and CO emissions of refrigerated vehicle are the five evaluation criteria that obtained the highest weight priority in the analysis. The final ranking indicates that Yoshida Saigon Cold Logistic company (CPL-05) is the best CLP among alternatives. A comparative analysis was conducted to test the robustness of the approach, with the results illustrating that the applied methods reach common CLP rankings. This shows that the applied approach is practical in nature.
The contributions of the present study are three-fold. First, our study aims to evaluate cold supply chain logistics providers in the context of Vietnam, which has never been investigated before in the literature. While evaluating the alternatives, a set of sustainability criteria is examined, which is a significant advantage of this study. Second, in terms of method, the combination of AHP, COPRAS, and the grey theory is proposed to solve the problem that has been identified as appropriate and effective methodologies for the cold chain industry evaluation. The application of grey-based MCDM methods for the evaluation of 3PL in general and selecting CLPs, in particular, is limited. Thus, this study shows the applicability of other grey-based multi-criteria methods for the logistics providers evaluation in an integrated manner. The presented approach was applied for Vietnam to show its effectiveness and the applicability. On the one hand, compared to the classical AHP, the introduced G-AHP method can solve intricate problems in uncertain conditions, which makes it a very effective technique and provides more information on specific elements of experts’ preferences. In addition, very few studies have used the integration of the G-COPRAS tool for 3PL evaluation. The grey relationship in G-COPRAS makes it more practical when dealing with uncertain factors and the method creates results with higher accuracy, fewer computation steps, and a shorter calculation time. Third, for managerial implications, the assessments presented in this research offer valuable materials for managers, practitioners, and stakeholders of cold chain businesses not only to assess the most efficient CLP in the supply chain in the market but also to devise suitable strategies toward sustainable development.
Although the methodology adopted in this study has been conducted successfully in prioritizing different alternatives and factors, it was not without some limitations. One limitation can be the use of the AHP method. Although the consistency check in the present study has been fulfilled, it is inconceivable to neglect the inconsistency in the pairwise comparison matrix that might occur in practice for other problems. The best worst method (BWM) can overcome this drawback as it unburdens decision-makers by requiring fewer pairwise comparisons than the conventional AHP procedure [
58] or the multi-level parsimonious analytic hierarchy process (PAHP) method, which can significantly reduce survey [
59]. The analytic network process (ANP) method can also be a better option to avoid the interrelationship of factors. Hence, these methods are recommended for future studies. Another limitation is that the evaluation process of CLPs depends on the involvement of experts; thus, the results are based on personal opinions, knowledge, and judgment. To avoid this limitation, 15 experts were utilized to provide different preferences. Thus, different multi-criteria evaluation techniques such as VIKOR, TOPSIS, WASPAS, PROMETHEE, and MACBETH (measuring attractiveness by a categorical based evaluation technique) could be employed to achieve the same goal, and findings could be compared.
The methodology used in this study can also be extended within the dynamic and uncertain environment in future research by integrating novel criteria factors responsible for coordination in the supply chain, especially those regarding the current crisis. In addition, the present study could be applied to specific supply chain scenarios in different industries and countries with other multi-criteria methods as outlined earlier to see if the findings are generalizable.