Key Factors for the Selection of Logistics Service Provider in a Closed-Loop Supply Chain

From implementing a closed-loop supply chain, companies can generate more value and profits. However, closed- loop supply chains add complexity to overall supply chain management. It is a feasible way for companies to outsource all or part of logistics to third-party providers. The selection of a proper provider, which suits the needs of the outsourcing company, is not an easy task. The complexity of this task increases with an increase in the number of selection criteria. This paper focuses on the key factors for the selection of logistics service provider according to the different types of logistic outsourcing partnership. Based on the scope dimension analysis, the partnership is classified into three different types: transactional, strategic, and transformational. They are analyzed based on transaction cost theory, resource-based theory and resource dependence theory respectively. For different type of logistics outsourcing partnership, the key factors for the selection of third- party providers are different.