Third-Party logistics service providers (3PLSPs) Selection & evaluation: A hybrid AHP-DEA-COPRAS-G group decision-making approach

Abstract

The objective of this study is to identify the best third-party logistics service provider (3PLSP) by using a hybrid approach, i.e., analytical hierarchy process (AHP) - data envelopment analysis (DEA) - grey-complex proportional assessment (COPRAS-G). In the first phase, AHP was used for determining the priority weights' of criteria. Secondly, data envelopment analysis (DEA) for selecting the efficient service providers based on the AHP weights, and lastly COPRAS-G was applied for obtaining final ranks of 3PLSPs for fast moving consumer goods (FMCG) supply chain in the Indian context. The criteria used in this study were obtained by taking inputs from the experts of the case supply chain. A total of ten criteria were considered namely freight cost/km, fleet capacity, vehicle quality/order, driver's quality and acceptance rate/order, distance target achieved, flexibility capability, on-time delivery, financial strength/turn over, customer support and service, and training learning and growth. A criterion, namely freight cost/km, was found to be the most significant and out of thirty 3PLSPs a service provider namely V2 was found be the best one. This study forms guidelines for the academicians as well as practitioners for the smooth decision-making process of 3PLSPs evaluation and selection.