Abstract

As a consequence of an increasing trend toward the outsourcing of logistics activities, shippers have been faced with the inevitability of selecting an appropriate third-party logistics (3PL) provider. The selection process for the identification of a 3PL provider that best fits user requirements involves multiple criteria and alternatives and may be one of the most complex decisions facing logistics users. In this regard, this study proposes an evaluation framework and methodology for selecting a suitable 3PL provider and illustrates the process of evaluation and selection through a case study. It is expected that the results of this study will provide a practical reference for logistics managers who want to engage the best 3PL provider. Future research using different datasets is warranted to verify the generalizability of the findings.

Key words: third-party logistics, fuzzy analytic hierarchy process, multi-criteria decision making, sensitivity analysis.