Title: Third-party logistics service providers selection and evaluation: a hybrid AHP-DEA-COPRAS-G group decision-making approach

Authors: Rakesh D. Raut; Bhaskar B. Gardas; Shamik Pushkar; Balkrishna E. Narkhede

Addresses: Department of Operations and Supply Chain Management, National Institute of Industrial Engineering (NITIE), Vihar Lake, NITIE, Powai, Mumbai, Maharashtra, 400087, India ' Department of Mechanical Engineering, 8, Saboo Siddik Polytechnic Road, New Nagpada, Byculla, Mumbai, Maharashtra, 400008, India ' National Institute of Industrial Engineering (NITIE), Room No. 420, Taylor Hall, Vihar Lake, NITIE, Powai, Mumbai, Maharashtra, 400087, India ' Department of Industrial Engineering, National Institute of Industrial Engineering (NITIE), Vihar Lake, NITIE, Powai, Mumbai, Maharashtra, 400087, India

Abstract: The objective of this study is to identify the best third-party logistics service provider (3PLSP) by using a hybrid approach, i.e., analytical hierarchy process (AHP) - data envelopment analysis (DEA) - grey-complex proportional assessment (COPRAS-G). In the first phase, AHP was used for determining the priority weights' of criteria. Secondly, data envelopment analysis (DEA) for selecting the efficient service providers based on the AHP weights, and lastly COPRAS-G was applied for obtaining final ranks of 3PLSPs for fast moving consumer goods (FMCG) supply chain in the Indian context. The criteria used in this study were obtained by taking inputs from the experts of the case supply chain. A total of ten criteria were considered namely freight cost/km, fleet capacity, vehicle quality/order, driver's quality and acceptance rate/order, distance target achieved, flexibility capability, on-time delivery, financial strength/turn over, customer support and service, and training learning and growth. A criterion, namely freight cost/km, was found to be the most significant and out of thirty 3PLSPs a service provider namely V2 was found be the best one. This study forms guidelines for the academicians as well as practitioners for the smooth decision-making process of 3PLSPs evaluation and selection.

Keywords: third-party logistics; performance evaluation and selection; group decision making; analytic hierarchy process; data envelopment analysis; DEA; COPRAS-G; FMCG supply chains.

DOI: 10.1504/IJPM.2019.102936

International Journal of Procurement Management, 2019 Vol.12 No.6, pp.632 - 651

Received: 26 Feb 2018
Accepted: 27 Nov 2018
Published online: 11 Oct 2019 *

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