An integrated fuzzy approach for provider evaluation and selection in third-party logistics

Abstract

The demand of third-party logistics (3PL) provider becomes an increasingly important issue for corporations seeking improved customer service and cost reduction. The present paper presents an integrated fuzzy approach for the evaluation and selection of 3PL providers. This method consists of three different techniques: (1) use fuzzy Delphi method to identify important evaluation criteria; (2) apply fuzzy inference method to eliminate unsuitable 3PL providers; and, (3) develop a fuzzy linear assignment approach for the final selection. The proposed method enables decision analysts to better understand the complete evaluation process of 3PL selection. Furthermore, this approach provides a more accurate, effective, and systematic decision support tool for 3PL provider selection. Finally, an actual industrial application is presented to demonstrate the proposed method.