Selection of logistics service provider: An analytic network process (ANP) approach

Abstract

This article presents a comprehensive methodology for the selection of a logistic service provider. The proposed methodology consists of two parts: (i) preliminary screening of the available providers, and (ii) analytic network process (ANP)-based final selection. The criteria, which are relevant in the selection of a provider, have been identified and used to construct an ANP model. Thereafter, the application of ANP for the final selection of a provider has been demonstrated through an illustrative example. The results of this example indicate that compatibility between the user and the provider companies is the most important determinant, which influences the final selection process. This approach also enables the decision-makers to better understand the complex relationships of the relevant attributes in the decision-making, which may subsequently improve the reliability of the decision.