The performance measurement of third party logistics (3PL) is very important to improve the customer service level and hence efficiency of supply chain. This is a multi-criteria decision making problem which incorporates various supply chain parameters. A framework for performance measurement of 3PL providers has been developed in this paper, which uses AHP (Analytic Hierarchy Process) and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution). The main contribution of this paper includes application of integrated AHP and TOPSIS framework to measure the relative strength of the 3PLs. This paper may help to supply chain manager to select a best 3PL and to improve the performance of existing 3PL
AckermanK. B. (1996), “Pitfalls in logistics partnerships,”International Journal of Physical Distribution and Logistics Management, Vol. 26 (3), pp. 35–37.
2.
AndersonD.NorrmanA. (2002), “Procurement of logistics services-a minutes work or a multi-year project?”European Journal of Purchasing and Supply Management, Vol. 8, pp. 3–14.
3.
AndijaniA.A.AnwarulM. (1997) “Manufacturing blocking discipline: A multicriterion approach for buffer allocation,”International Journal of Production Economics, Vol. 51(3), pp. 199–212.
4.
BagchiP. K.VirumH. (1998) “Logistical alliances: trends and prospects in integrated Europe,”Journal of Business Logistics, Vol. 19, No. 1, pp. 191–213.
5.
BottaniE.RizziA. (2006), “A fuzzy TOPSIS methodology to support outsourcing of logistics services,”Supply Cain Management: An International Journal, Vol. 11(4), pp. 294–308.
6.
BoysonS.CorsiT.DresnerM.RobinovichE. (1999), “Managing third party logistics relationships: What does it take?”Journal of Business Logistics, Vol. 20(1), pp. 73–100.
7.
Capgemini, Georgia Institute of Technology, SAP, and DHL, (2007) “Third party logistics, results and findings of 12th annual study, 2007”.
8.
ChanF. T. S.JiangB.TangN. K. H. (2000), “Development of intelligent decision support tools to aid the design of flexible manufacturing system,”International Journal of Production Economics, Vol. 65 (1), pp. 73–84.
9.
CharnesA.CooperW. W.RhodesE. (1978), “Measuring the efficiency of decision making units.”European Journal of Operational Research, Vol. 2 (6), pp. 429–444.
10.
CharnesA.CooperW. W.ThrallR. M. (1991). “A structure for classifying and characterizing efficiency and inefficiency in data envelopment analysis.”Journal of Productivity Analysis, Vol. 2 (3), pp. 197–237.
11.
ClossJ. C.GoldsbyT. J.ClintonS. R. (1997), “Information technology influences on world-class logistics capability,”International Journal of Physical Distribution and Logistics Management, Vol. 27 (1), pp. 4–17.
12.
CooperW. W.SeifordL. M.ZhuJ. (2004), Hand book on Data Envelopment Analysis, Boston.
13.
El-WahedW. A.Al-HindiH. (1998), “Applying the analytic hierarchy process to the selection of expert system shell,”Advances in Modeling and Analysis, Vol. 40(2), pp. 45–57.
14.
WangGeSamuelH.H.DismekesJ.P. (2004), “Product driven supply chain selection using integrated multicriteria decision-making methodology,”International Journal of Production Economics, Vol. 91, pp. 1–15.
15.
GhodsypourS. H.O'BrienC. (1998), “A decision support system for supplier selection using and integrated analytic hierarchy process and linear programming,”International Journal of Production Economics, Vol. 56–57, pp. 199–212.
16.
HarkerP. T. (1989), “The art and science of decision making.” In: GoldenB. L.WasilE. A.HarkerP. T. (Eds.), The analytic hierarchy process: applications and studies, Springer, Berlin, pp. 3–36.
17.
HwangC. L.YoonK. (1981), “Multiple attribute decision making: Methods and applications”, Springer-Verlag, New York.
18.
JayanthiS.KochaB.SinhaK. K. (1999) “Competitive analysis of manufacturing plants: An application to US processed food industry,”European Journal of Operational Research, Vol. 118, No. 2, pp. 217–234.
19.
JharkhariaS.ShankarR. (2007), “Selection of logistics service providers: An analytic network process (ANP) approach,”OMEGA, The International Journal of Management Science, Vol. 35(3), pp. 274–289.
20.
LaiV. S.TruebloodR. P.WongB. K. (1999) “Software selection, A case study of the application of the analytical hierarchical process to the selection of a multimedia authoring system,”Information and Management, Vol. 36 (4), pp. 221–232.
21.
Mason-JonesR.TowillD.R. (1998), “Time compression in the supply chain: information management is the vital ingredients,”Logistics Information Management, Vol. 11 (2), pp. 93–104.
22.
MinH.JooS. J. (2006), “Benchmarking the operational efficiency of third party logistics providers using data envelopment analysis,”Supply Chain Management: An International Journal, Vol. 11 (3), pp. 259–265.
23.
ParkanC.WuM. L (1998), “Process selection with multiple objective and subjective attributes.”Production Planning & Control, Vol. 9 (2), pp. 189–200.
24.
RazzaqueM.A.ShengC.C (1998), “Outsourcing of logistics function: A literature survey,”International Journal of Physical Distribution & Logistics Management, Vol. 28 (2), pp. 89–107.
25.
RobinovichE.WindleR.DresnerM.CorsiT. (1999), “Outsourcing of integrated logistics functions: an examination of industry practices,”International Journal of Physical Distribution and Logistics Management, Vol. 29(6), pp. 353–373.
26.
RondinelliD.BerryM. (2000), “Multimodal transportation, logistics, and the environment: Managing interactions in global economy,”European Management Journal, Vol. 18 (4), pp. 398–410.
27.
SaatyThomas L. (1980), “The analytic hierarchy process, McGraw-Hill Book Company, New York.
28.
SchniederjansM. J.GarvinT. (1997), “Using analytic hierarchy process and multiobjective programming for the selection of cost drivers in activity based costing,”European Journal of Operational Research, Vol. 100 (1), pp. 72–80.
29.
StockG.N.GreisN.P.KasardaJ.D. (1998), “Logistics strategy and structure-a conceptual framework,”International Journal of Operations and Production Management, Vol. 18 (1), pp. 37–52.
30.
TamM.C.Y.TumalaV.M.R. (2001), “An application of AHP in vendor selection of a telecommunications system”. Omega: International Journal of Management Science, Vol. 29 (2), pp. 171–182.
31.
WangJ. S.LiuD.DuanG.LeiN. (1999), “Analytic hierarchy process based decision modeling CAPP development tools,”International Journal of Advanced Manufacturing Technology, Vol. 15 (1), pp. 26–31.
32.
YungJ. H. Y.SelenW.SumC. C.HuoB. (2006), “Linking financial performance to strategic orientation and operational priorities: an empirical study of third party logistics providers,”International Journal of Physical Distribution and Logistics Management, Vol. 36 (3), pp. 210–230.
