Third-party logistics service providers selection using AHP-DEAHP approach

Third-party logistics (3PLs) service providers have become an extremely important part of any organisation's supply chain. They are required in almost all business operations right from supplying the raw material to the manufacturing plants to delivering finished products to the end customers and hence appropriate selection of these service providers will not only make the organisation competitive but also contribute significantly to profitability. Present research focuses on first identifying criteria or enablers, which can be used to evaluate 3PLs. These enablers are further utilised by a hybrid multi-criteria decision-making technique of data envelopment analytic hierarchy process (DEAHP) to select the most appropriate 3PL service provider amongst choices available. With the help of exhaustive literature review, 14 major selection criteria were identified. Uniqueness of the research lies in the application of this hybrid technique to the selection of 3PLs for a manufacturing company.