Abstract
This paper presents a multicriterica decision making method (MCDM) to evaluate the performance of the fourth-party logistics providers. The four indexes of balanced scorecard (BSC) are used as the evaluation indexes. AHP (analytical hierarchy process) is used for rating the weights of criteria and alternatives. MCDM method of SAW (Simple Additive Weighting) is used for ranking the companies. Results show that the approach is applicable for the performance measurement problem.
Highlights
To cost down and increase core competence, many companies deal with their logistics activities by the thirdparty logistics provider (3 PL)
Five decision makers (D1, D2, ..., D5) are formulated as a team to evaluate the performance of 6 logistics providers
The DMs decide to evaluate the performance of logistics providers based on balanced scorecard (BSC)
Summary
To cost down and increase core competence, many companies deal with their logistics activities by the thirdparty logistics provider (3 PL). With the development of electronic commercial, a new logistics provider which is called the fourth party logistics (4 PL) is more and more popular in Taiwan. The main difference between the 3 PL and 4 PL lies in that firms own their own assets in the 3 PL, and they perform more than one or more logistics services. Firms do not own any type of assets in the 4 PL. The 4 PL only arrange the logistics services and serve as an intermediary between the firm and the service provider. With the help of the 4 PL, the companies can manage the 3 PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer
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