Abstract
Companies can perform their freight distribution in three different ways. The first concept, the in-house concept, represents the use of a company’s own resources and knowledge to organize transportation from the production to retailers or from the warehouse to customers. The opposite concept is to outsource distribution activities by hiring third-party logistics providers. The third concept represents a combination of the previous two. Although the arguments in favor of outsourcing can be found in the literature, an appropriate selection of a freight distribution concept is specific for each company and depends on many evaluation criteria and their symmetrical roles. This paper presents a methodology that can be used by companies that need to choose their freight distribution concept. An advanced extension of the Additive Ratio ASsessment (ARAS) method is developed to solve the freight distribution concept selection problem. To illustrate the implementation of the proposed methodology, a tire manufacturing company from the Czech Republic is taken as a case study. However, the proposed picture fuzzy ARAS method is general and can be used by any other company. To validate the novel picture fuzzy ARAS method, a comparative analysis with the nine existing state-of-the-art picture fuzzy multi-criteria decision-making methods is provided.
Highlights
The study of the methods of physical connection between producers of goods and customers has been an intriguing topic since ancient times
This study presents an advanced extension of the Additive Ratio ASsessment (ARAS) method to tackle decision-making issues in real-life situations
Bhatnagar et al [18] emphasized that various cost-saving opportunities, increased supply chain flexibility, and improved logistics efficiency could be realized by logistics outsourcing with professional help from third-party logistics (3PL) service providers
Summary
The study of the methods of physical connection between producers of goods and customers has been an intriguing topic since ancient times. Carrying out freight distribution activities in a proper way is of crucial importance for companies. The internal benefits of freight distribution are improved business operations, cost reduction, brand building, etc. Its external benefits affect a broader economy, society, and environment. Some companies perform distribution activities by themselves, while others engage third-party logistics (3PL) providers. Determining how to select a freight distribution concept (FDC) is a matter of importance. The term FDC can refer to the choice of transport mode in distribution activities [1]. FDC refers to the organizational issue, i.e., whether a company should organize the distribution on its own or outsource
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
