Decision support model for evaluation and selection of Third Party Logistics service providers

Abstract

Third Party Logistics (3PL) service providers play an important role in fulfilling the strategic objectives of shippers. The importance of 3PL service providers is growing globally. The growing demands encourage the evolution of new services, thus shipper's management is keen on 3PL service providers. This paper describes Technique for Order Preference by Similarity to Ideal Solution for critically analysing and selecting potential 3PL service providers in fuzzy environment. Various selection criteria measured in linguistics term in vague and subjective reference are accounted using Triangular Fuzzy Numbers. The case problem demonstrates fuzzy Multi-Criteria Decision Making method to evaluate the potential 3PL service providers by assigning weight to each criterion and later on synthesising the capability exhibited by them. Decision Makers' fuzzy potential 3PL service providers for a case problem of shipper. Copyright © 2008, Inderscience Publishers.