Towards a Pro-Silience Framework: A Literature Review on Quantitative Modelling of Resilient 3PL Supply Chain Network Designs

Abstract

The increasingly dynamic and volatile market environment has elevated the importance of handling operational risks in supply chain networks. Also, black swan risks are constantly evolving and can strike from almost anywhere, including natural disaster, cyber risk, or viruses. As more companies are outsourcing their logistics to third-party logistics (3PL), at the same time, supply chain risks and uncertainties are also shifted to 3PLs. A 3PL’s supply chain network capability to assure continuity can be expressed in terms of resilience, i.e., the ability of sensing and responding to disturbances or threats. Operations research/management science (OR/MS) methods have been widely applied in supply chain management. The objective of this paper is to look into research regarding the development of resilient 3PL supply chain network designs through the utilization of OR/MS methods. After extensive literature review, a so called pro-silience framework is developed aiming at improving resilience from a 3PL perspective maintaining or increasing its competitive advantage during and after major disruptions, yet also maintain competitiveness under normal operating conditions. Additionally, the framework offers insights into topics for future research.