An integrated model for selection of third party logistic provider

Abstract

Recent technological developments have greatly influenced the 3PL selection process in the supply chain management environment. Since selection criteria play a pivotal role in effectively managing logistic outsourcing, this investigative research work aims to establish a comprehensive framework for integrated decision making model in 3PL selection process. For identification of selection criteria, highly influencing the decision making process in a practical scenario, which forms part of the support function and performance measurement model to develop guidelines to companies in selection and management of 3PL service providers through empirical approach. The selection criteria ranking is analyzed using Analytic Network Process (ANP), Data Envelopment Analysis (DEA), Structural Equations Modelling (SEM), Analytical Hierarchy Process (AHP), and fuzzy Analytical Hierarchy Process (fuzzy-AHP). newlineTo this end, practical suitability of selection criteria is validated through factor analysis technique to reduce selection variables, exploratory factory analysis to group variables and confirmative factor analysis to assess their performance in integrated decision making model employed for 3PL selection process in supply chain management. newline newline