Third-Party Logistics (3PL) Provider Selection Using Hybrid Model of SWARA and WASPAS

Abstract

Increasing competition as a result of globalization forces companies to focus on the core activities they are specialized in and to use outsourcing in areas other than these core activities. Companies seek to outsource their logistics functions partially or completely since this is not in their main field of activity. Thus, companies are faced with the problem of choosing a Third Party Logistics (3PL) service provider that can contribute to their sustainable development and perfectly perform the logistics activities. In this study, the 3PL selection problem of a cable manufacturing company is discussed. The study aims to solve the business problem and to show the applicability of Multi-Criteria Decision-Making (MCDM) methods in the most appropriate 3PL selection problems. The 3PL selection was made in line with the criteria and alternatives determined by a team of decision-makers working in the relevant department of the company. First of all, the weight value of each criterion was determined by using the SWARA method based on the MCDM method. This method was chosen because it takes group decisions into account and is easy to implement. Afterward, calculations were made according to the criteria levels of each alternative service provider with the WASPAS method. In the study, 12 criteria were determined by the decision-makers. Besides, 5 different 3PL companies were taken into account. According to the results of the study, it was the third 3PL that met the criteria at the most appropriate level.