Selection of potential 3PL services providers using TOPSIS with interval data

Abstract

Third party logistics (3PL) services providers play a vital role in fulfilling the dream of shippers through effective logistical supply chain management. 3PL services providers satisfy the customers' demand of supplying the shippers' product in required time at required destination thereby help the shippers in enhancing their market share. The efficient supply of their products, not only wins the heart of the worthy customers, but also fetches profits which expand their business. However, the shippers objectives may gets fulfilled only by selecting potential 3PL services providers, hence a care must be taken before the contract is awarded to 3PL services providers. The paper presents the methodology to earmark potential 3PL services providers using Technique for Order preference by Similarity to Ideal Solution (TOPSIS) with interval data. Criteria importance weights have been derived using Analytic Hierarchy Process (AHP) in order to judge 3PL services providers. The paper also illustrates the extended TOPSIS methodology, by a case problem. © 2007 IEEE.