Development of Integrated Model Framework for Selection of 3PL Service Provider in SCM Environment through Estimation and Analysis of Selection Criteria

Abstract

In this paper, an attempt is tried to develop an integrated model framework for the selection of the third party logistics service provider in a supply chain management environment. From this perspective, the main goal of this research work, involving application of various MCDM and hybrid analytic tools such as DEA, ANP and fuzzy-AHP method, is to identify suitable selection criteria; ranking these selection criteria through various tools; analyzing the relative performance of these selection criteria; verifying the real-time suitability and practicability to apply in industry; and finally, validating the effectiveness of 3PL service provider selection criteria.  In all, the proposed fuzzy-AHP method outperforms the conventional methods developed earlier in the selection of the 3PL providers in SCM environment.  Derived from the results, an SCM framework proposed for a 3PL selection provider has modifications on latent variables that will directly impact organizational effectiveness and its performance to evolve an organizational strategy for sustained growth and success.

Keywords – 3PL Selection, Evaluation of Selection Criteria, DEA Method, ANP Method, Fuzzy-AHP method