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A Fuzzy AHP Model for 3PL Selection in Lead Logistics Provider Scenarios
Abstract
Selection of service providers in the global supply chains of today has been recognized as having a very important effect on the competitiveness of the entire supply chain. It results in achieving high quality end results (products and/or services), at reasonable cost coupled with high customer satisfaction. This article discusses the use of Fuzzy Analytic Hierarchy Process (FAHP) to effectively manage the qualitative and quantitative decision factors which are involved in the selection of providers of 3PL services under Lead Logistics Provider (LLP) environments of today. Lead logistics providers (LLP) are increasingly being banked upon to integrate the best of 3PL service providers and allow for synchronized and optimized operations. In the asset free environments of today, many a times, the LLP uses the services of the 3PL and hence the issue of reliably choosing them assumes increasingly greater significance. The fuzzy-AHP has been adequately demonstrated in literature to be an effective tool which can be used to factor-in the fuzziness of data. Triangular Fuzzy Numbers (TFN) have been deployed to make over the linguistic comparisons of criteria, sub-criteria and the alternatives. The FAHP based model formulated in this chapter is applied to a case study in the Indian context using data from three leading LSPs with significant operating leverages in the province of Uttrakhand (India). The proposed model can provide the guidelines and directions for the decision makers to effectively select their global service providers in the present day competitive logistics markets.
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