Selection of Third Party Logistics Provider in supply chain

Abstract

For most of the manufacturing firms, logistics is not considered to be a core competency and it is often performed by Third Party Logistics Provider (TPLP). The present work describes an efficient decision framework for TPLP evaluation and selection in supply chain. The objective of this paper is to explain how an Analytic Hierarchy Process (AHP) and Performance Value Analysis (PVA) algorithm can be used to capture and analyse Significant Categories (SCs) and Performance Indicators (PIs) for ranking the TPLPs effectively. The application of decision framework for TPLP evaluation and selection has been demonstrated with a case situation.