Article: A fuzzy decision-making methodology for third-party logistics selection in the existence of the company's policy priorities: case of household appliance manufacturer Journal: International Journal of Logistics Systems and Management (IJLSM) 2022 Vol.43 No.2 pp.193 - 237 Abstract: Third-party logistics (3PL) provider selection is still an issue in supply chain management when company' policies priorities are set in uncertain and vague decision situations. This paper proposes a decision-making (MCDM) model to outsource logistics by prioritising the company's policies in an uncertain environment. Initially, fuzzy stepwise weight assessment ratio analysis (FSWARA) prioritises and weights selection criteria; then, fuzzy technique for order preference by similarity to ideal solution (FTOPSIS) evaluates and ranks potential alternatives. Additionally, sensitivity analysis verifies the robustness of the proposed model, and a business dashboard validates the decision-making team opinion during the 3PL selection process. Its implementation in a Brazilian household appliance manufacturer indicates that the high priority for the company when outsourcing logistics activities is to focus on safety and environment while information technology comprises the last of its priorities. The proposed model can assist managers and researchers in teaching the selected provider about customer concerns. Inderscience Publishers - linking academia, business and industry through research

Title: A fuzzy decision-making methodology for third-party logistics selection in the existence of the company's policy priorities: case of household appliance manufacturer

Authors: Bengie Omar Vazquez Reyes; João Carlos Colmenero

Addresses: Department of Production Engineering, Federal University of Technology – Parana, Ponta Grossa, Parana, Brazil ' Department of Production Engineering, Federal University of Technology – Parana, Ponta Grossa, Parana, Brazil

Abstract: Third-party logistics (3PL) provider selection is still an issue in supply chain management when company' policies priorities are set in uncertain and vague decision situations. This paper proposes a decision-making (MCDM) model to outsource logistics by prioritising the company's policies in an uncertain environment. Initially, fuzzy stepwise weight assessment ratio analysis (FSWARA) prioritises and weights selection criteria; then, fuzzy technique for order preference by similarity to ideal solution (FTOPSIS) evaluates and ranks potential alternatives. Additionally, sensitivity analysis verifies the robustness of the proposed model, and a business dashboard validates the decision-making team opinion during the 3PL selection process. Its implementation in a Brazilian household appliance manufacturer indicates that the high priority for the company when outsourcing logistics activities is to focus on safety and environment while information technology comprises the last of its priorities. The proposed model can assist managers and researchers in teaching the selected provider about customer concerns.

Keywords: logistics outsourcing; decision making; priorities setting; company policy; fuzzy logic; SWARA; stepwise weight assessment ratio analysis; TOPSIS.

DOI: 10.1504/IJLSM.2022.126015

International Journal of Logistics Systems and Management, 2022 Vol.43 No.2, pp.193 - 237

Received: 08 May 2020
Accepted: 23 Jul 2020
Published online: 07 Oct 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article

Title: A fuzzy decision-making methodology for third-party logistics selection in the existence of the company's policy priorities: case of household appliance manufacturer

Keep up-to-date