African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4193

Full Length Research Paper

Fuzzy analytic hierarchy process (FAHP) and balanced scorecard approach for evaluating performance of Third-Party Logistics (TPL) enterprises in Chinese context

Lin Wang1, Hao Zhang1 and Yu-Rong Zeng2*
1School of Management, Huazhong University of Science and Technology, Wuhan 430074, China. 2School of Information Management, Hubei University of Economics, Wuhan 430205, China.
Email: [email protected]

  •  Accepted: 26 September 2011
  •  Published: 18 January 2012

Abstract

Enterprise performance evaluation is a good way to effectively and continuously improve and enhance the efficiency of logistics enterprises. To meet the mounting requirements of reliable, speedy, and flexible delivery to global customers, China’s Third-Party Logistics (TPL) providers have to establish a reasonable performance evaluation system. The objective of this study is to construct an approach based on the fuzzy analytic hierarchy process (FAHP) and balanced scorecard (BSC) for evaluating a TPL enterprise in China. The BSC concept is applied to define the hierarchy with four major perspectives (that is, financial, customer, internal business process, and learning and growth), and performance criteria are selected for each perspective. Then, a FAHP approach is proposed in order to tolerate vagueness and ambiguity of information. At last, a numerical example shows the proposed model can be a useful and effective assessment tool for solving this kind of multiple-criteria decision-making problems.

 

Key words: Third-party logistics, performance evaluation, balanced scorecard, fuzzy analytic hierarchy process.