Developing a decision model for selecting freight forwarders in the Sri Lankan food and beverage manufacturing sector

Abstract

In Sri Lanka, the Food and Beverage manufacturing sector is faced with a number of logistics and supply chain management challenges, mainly in choosing freight forwarders for international trading. To transport the cargo efficiently, comply with international regulations and efficiently manage logistics operations at low costs, it is important to have a right freight forwarder. Knowing what influences selection of a freight forwarder benefits firms to improve operational efficiency and stay competitive in the global market. This study addresses three primary objectives. First, to identify the factors influencing the selection of a freight forwarder in Sri Lanka's F&B manufacturing sector; second, to evaluate the critical factors that stakeholders prioritize when selecting a freight forwarder; and third, developing a robust decision model that integrates these factors to guide effective freight forwarder selection procedures. These objectives aim to provide stakeholders with clear guidelines for making effective decisions on freight forwarding services within the Sri Lankan food and beverage sector. The research methodology adopted a quantitative approach, to collect data from key stakeholders in the Sri Lankan F&B industry. Data analysis was conducted using the Confirmatory Factor Analysis method. It used to validate the underlying constructs and assess the relative importance of each factor in the decision-making process. Structural Equation Modelling was used to establish and analyse complex relationships between latent variables, develop a model for understanding the relationship between important factors. The study identified five primary criteria that significantly influence the selection of shippers in the Sri Lankan F&B industry: price, service quality, accuracy and industry experience. SEM analysis confirmed strong correlations between reliability and service quality, indicating that timely delivery and responsive service are critical to maintaining supply chain integrity and customer satisfaction. These findings underscore the heterogeneity of consignee selection in Sri Lanka's F&B manufacturing sector. The decision model derived from this study provides stakeholders in the Sri Lankan F&B industry with a structured approach to evaluate and select consignees based on objective criteria. Future research directions could explore the implementation of advanced technologies such as blockchain and IoT in logistics management, longitudinal studies to assess the long-term performance of the model, and comparative analyses with shipper selection practices in other global markets.