Selection of a third party logistics service provider for an aerospace company: An analytical decision aiding approach

Ozden Bayazit

Birsen Karpak
Youngstown State University
United States

Publication date: Jan, 2013

Journal: International Journal of Logistics Systems and Management
Vol.: 15- Issue: 4- Pages: 382-404

Publisher: Inderscience

Abstract: As shippers worldwide are increasing their use of third party logistics (3PL) services, the need for carefully selecting 3PL service providers is becoming much more critical. Choosing the right 3PL service provider is often a dilemma faced by supply chain managers. Our purpose is to show how the analytic hierarchy process (AHP) can be used in aiding companies with the decision of selecting the most capable 3PL service provider for an aerospace company. The methodology we propose enables practitioners to systematically evaluate the trade-offs among multiple factors and therefore helps them in making more informed decisions when evaluating outsourcing logistics services.

Keywords: AHP, Third party logistics, Logistics outsourcing, Sensitivity analysis