CHOOSING THE APPROACH TO BUILDING A THIRD-PARTY LOGISTICS (3PL) LOGISTICS CHAIN MANAGEMENT

Abstract

The paper analyzes the main criteria for choosing a “3PL” in the context of the “JIT” approach. The choice of “3PL” is an approach to analyze many tangible and intangible criteria that must be considered based on the client’s specific needs, goals, and specifics of the production process. The selection criteria of “3PL” depend on the field of activity of the third-party executor. A company looking to outsource inbound logistics focuses on operational factors such as the firm’s available capacity, equipment quality, and the process’s financial benefit. The choice of criteria for choosing firms for outsourcing logistics processes may be related to the location and availability of additional services in the company. The algorithm for building cooperation between companies is analyzed. The choice of “3PL” is problematic because it requires considering many criteria of different vectors – from the technological considering the economic side of production to the social consequences for the company, which is confirmed by various research areas. Several practical algorithms were analyzed to determine the optimal method of implementing the voluntary participation of companies in research. An AHP structure for choosing the best warehouse operator is considered, which visualizes the relationships between elements and displays their hierarchy. The constructed hierarchy logically represents a complex, multifactorial decision-making process and effectively describes the relationships between all elements of the evaluation system. Hierarchy facilitates the understanding of the principles of evaluation and consensus in making the final decision regarding the selection of warehouse space. Moving goods along the logistics chain is accompanied by significant risk. Requirements for logistics providers are constantly increasing and may go beyond the parties’ contractual obligations in times of crisis. That is why logistics service providers constantly decide how to ensure the maximum reliability of logistics operations at any point in the logistics chain. The choice of “3PL” is problematic because it requires considering many criteria of different vectors – from the technological, taking into account the economic side of production, to the social consequences for the company, which is confirmed by a wide variety of research areas.