Title: An analytic model for selection of and allocation among third party logistics service providers

Authors: R. Rajesh, S. Pugazhendhi, K. Ganesh

Addresses: Department of Mechanical Engineering, Noorul Islam University, Kumarakoil – 629180, India. ' Department of Manufacturing Engineering, Annamalai University, Chidambaram-608002, India. ' Global Business Services – Global Delivery, IBM India Private Limited, Mumbai-400051, India

Abstract: Third party logistics service provider (3PLSP) selection is a multi-criteria decision-making (MCDM) problem in a supply chain involving many qualitative and quantitative factors. The selection of an efficient and potential set of 3PLSPs that can meet the particular requirements of the customer and with whom the customer can strengthen its relationships is a crucial decision. This decision is influenced by several factors often in conflict, such as price, services offered, location, technology, quality, etc., and the problem complexity increases because of the imprecision and uncertainty involved in the decision-making process. In this paper a simple but effective approach to handle this kind of problems is proposed and the problem of allocation of workloads among the ranked 3PLSPs satisfying the set of constraints and meeting the set objective is also addressed. The application of the proposed approach to a real case is also presented.

Keywords: third party logistics; 3PL service providers; multicriteria decision making; MCDM; TOPSIS; order preference; similarity; ideal situations; fuzzy AHP; analytical hierarchy process; workload allocation; qualitative factors; quantitative factors; customer relationship management; CRM; pricing; services; location; technology; quality; problem complexity; imprecision; uncertainty; constraints; objectives; fish net manufacturers; India; heuristics; enterprise network management; data analysis; SCM; supply chain management.

DOI: 10.1504/IJENM.2009.032398

International Journal of Enterprise Network Management, 2009 Vol.3 No.3, pp.268 - 288

Published online: 02 Apr 2010 *

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