Selection process in logistics outsourcing – a view from third party logistics provider

Abstract

Many firms have turned to logistics outsourcing as a way to restructure their distribution networks and gain competitive advantages. Logistics outsourcing in which a third party logistics (3PL) provider is contracted for all or part of a company's logistics operations has seen consistently increasing use. This article focuses on how the 3PL organises their supply chains in light of how they choose to compete in consumer markets. Therefore, we first use negotiation mechanism to get some potential suppliers with outsourcing alternatives to be selected, and then use analytic hierarchy process (AHP) to find the best selection and form the partnership in apparel supply chain for the sake of gaining the most effective network. In particular, the mechanism focuses on the incorporation of the level of vagueness of preferences for those outsourcing alternatives realised by fuzzy logic.