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

  • M.Narasimharajan, R.Venkatesan


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