A novel technique for evaluating and selecting logistics service providers based on the logistics resource view

Abstract

The increasing importance of logistics outsourcing and availability of logistics services providers (LSPs) highlights the significance and complexity of the LSP evaluation and selection process. Most existing LSP evaluation and selection studies use historical performance data and assume independence among decision criteria. This paper proposes an integrated logistics outsourcing approach to evaluate and select LSPs based on their logistics resources and capabilities. This novel approach combines a fuzzy decision making trial, evaluation laboratory (FDEMATEL) and fuzzy techniques to order preferences by similarity to ideal solution (FTOPSIS) methods. The new multi-criteria decision making (MCDM) model addresses the impact relationships between decision criteria and ranks LSP alternatives against weighted resources and capabilities. The effectiveness of this approach is demonstrated through a real case study and a two-phase sensitivity analysis confirms its robustness.