The Third Party Logistics Supplier Selection and Evaluation

Abstract

Corporation’s own-running logistics are often inefficient, so more and more corporations would like to choose outsource logistics, that is, corporations use the third-party logistics suppliers to provide logistics services. The third-party logistics can simplify the distribution sectors, transport reasonably, use and allocate rationally the existing resources, and avoid the problems of funds used, low transportation efficiency, complicated distribution sectors and urban pollution increase brought by the own-running logistics. The third-party logistics can meet the requirements of low-carbon and environmental protection. When considering the logistics outsourcing, the selection of the third party logistics providers is the most important part, only selecting the appropriate logistics providers, enterprises can improve their competitiveness. To select the appropriate logistics providers, an effective evaluation method is essential. This paper identified a reasonable evaluation index system, and based on it, using the combination method of AHP and entropy to evaluate the third-party logistics providers comprehensively. This paper used analytic hierarchy process to determine the weight of each indicator firstly, then used the information entropy to calculate the options of the third-party logistics providers, and calculated the final score using the integrated calculating method finally, so as to determine the final option. The comprehensive evaluation method can evaluate the logistics providers by the combination of subjective and objective, and ensure enterprises to choose the third-party logistics provider more scientific and reasonable. Finally, this paper took the third party logistics provider selection of an agricultural products processing enterprise as an example in Heilongjiang Province, to prove the method practical.