Title: Identifying profitable clientele using the analytical hierarchy process

Authors: Rakesh Verma; Saroj Koul; Sushanth S. Pai

Addresses: Department of Decision Sciences and Information Systems, National Institute of Industrial Engineering (NITIE), Vihar Lake, Mumbai, Maharashtra 400087, India ' Jindal Global Business School, OP Jindal Global University, NCR of Delhi 131001, India ' Landmark Group, P.O. Box 25030, Dubai, UAE

Abstract: This paper presents an analytical hierarchy process (AHP)-based quantitative framework to help a logistics provider rank prospective partner original equipment manufacturer (OEM) companies with the view of optimising its business development approach in the fast moving consumer goods (FMCG) sector. Key decision making factors are identified using primary and secondary research. A total score is calculated for each OEM company and this ranking is used to identify which OEMs a third-party logistics (3PL) provider should align with. 3PL providers can use this framework to prioritise their business developments efforts and to focus on the right clientele to achieve profitable and sustainable growth. The value of this paper lies in identifying the critical decision making factors that drive the business and its logistics functions.

Keywords: analytical hierarchy process; AHP; quantitative modelling; third party logistics; 3PL; original equipment manufacturers; OEMs; fast moving consumer goods; FMCG; profitable clientele; sustainable growth.

DOI: 10.1504/IJBSR.2016.075758

International Journal of Business and Systems Research, 2016 Vol.10 No.2/3/4, pp.220 - 237

Received: 10 Mar 2015
Accepted: 15 Oct 2015
Published online: 01 Apr 2016 *

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