Integration of Rough SWARA and COPRAS in the Performance Evaluation of Third-Party Logistics Providers

Abstract

Currently, the use of logistics service providers in companies has become a decision chosen by several companies. Companies use Third Party Logistics (3PL) to focus more on other essential activities in the company. Evaluating the performance of a 3PL provider is an essential process in determining performance of a 3PL provider. A wrong evaluation process could lead to company’s loss. The main objective of this study was to propose a 3PL performance appraisal procedure. This study integrated the Rough method Step-wise Weight Assessment Ratio Analysis (SWARA) and the Complex Proportional Assessment Method (COPRAS) to assess the performance of 3PL providers. The SWARA Rough method was used to assess the ranking of the criteria. The results of the Rough SWARA ranking were utilized by the COPRAS method to assess supplier performance. A case study was conducted in an animal feed production company in Indonesia. The results showed that there were criteria for product safety; on-time delivery, responsiveness, and flexibility with the greatest weight among the 16 criteria used.