3PL selection criteria in integrated circuit manufacturing industry in Taiwan

Purpose – The purpose of this study was to identify the key third-party logistics (3PL) selection criteria for the integrated circuit (IC) manufacturing industry in Taiwan. The IC manufacturing industry seeks global sourcing, and is facing increasing pressure due to fierce market competition. More than a cost reduction strategy, 3PL is a strategic tool for IC manufacturers to gain a competitive advantage in a global supply chain complex. Design/methodology/approach – The triangulation method that combines qualitative and quantitative approaches was used in the study. The qualitative approach of focus group discussions was adopted to establish the decision framework, and the quantitative approach of the analytic hierarchy process was used to explore the relative importance of the 3PL selection criteria. Finally, an in-depth proof-by-example interview was undertaken to provide an insightful interpretation of the research results. Findings – The research shows that performance is the most important criterion...

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