Empowerment and Evaluation Model for Sustainable Logistics Providers: A Framework for Measuring and Rewarding Sustainability

Modern business conditions indicate the need to use the services of logistics providers. An important aspect of logistics providers’ business is sustainability, which can be viewed from different aspects. Sustainability is viewed through economic, ecological and social aspects, not only within the scope of business and cooperation between providers and users of services, but also in a wider social context because it contributes to improving the quality of life of individuals and society as a whole. The aim of the work is to develop a new approach for measuring and improving the sustainability of logistics providers, but also to define a reward system for providers who recognize the importance of sustainability and stand out as leaders in that field. The initially defined criteria for the evaluation of providers included: company size, price of services, number of delays, average delay time, environmental impact, labor and human rights, ethics, sustainable procurement, number of realized transactions, number of registered vehicles, SDS and application of ISO standards, as well as the level of innovation. In the later stages of the analysis, the focus was narrowed to two basic criteria — price and size of the company, and new ones were added, such as: Social responsibility, expanding the fleet of environmentally-powered vehicles, opportunities for young people, resource sharing, provider reputation, profitability and international presence, which made the analysis more precise and comprehensive. In the initial phase of the application of the method, six efficient providers were selected, and in the later analysis, the provider that was evaluated as the most efficient — provider “three” — was selected. A reward system was defined for the providers who took the first three places. The contribution of the work is reflected in the development of a unique approach for assessing the various dimensions of provider sustainability, but also in defining a system for the support and empowerment of providers. The results show a high degree of applicability of this approach, highlighting its importance for improving sustainability in the logistics sector.