A fuzzy decision-making methodology for third-party logistics selection in the existence of the company's policy priorities: case of household appliance manufacturer

Bengie Omar Vazquez Reyes and João Carlos Colmenero

International Journal of Logistics Systems and Management, 2022, vol. 43, issue 2, 193-237

Abstract: Third-party logistics (3PL) provider selection is still an issue in supply chain management when company' policies priorities are set in uncertain and vague decision situations. This paper proposes a decision-making (MCDM) model to outsource logistics by prioritising the company's policies in an uncertain environment. Initially, fuzzy stepwise weight assessment ratio analysis (FSWARA) prioritises and weights selection criteria; then, fuzzy technique for order preference by similarity to ideal solution (FTOPSIS) evaluates and ranks potential alternatives. Additionally, sensitivity analysis verifies the robustness of the proposed model, and a business dashboard validates the decision-making team opinion during the 3PL selection process. Its implementation in a Brazilian household appliance manufacturer indicates that the high priority for the company when outsourcing logistics activities is to focus on safety and environment while information technology comprises the last of its priorities. The proposed model can assist managers and researchers in teaching the selected provider about customer concerns.

Keywords: logistics outsourcing; decision making; priorities setting; company policy; fuzzy logic; SWARA; stepwise weight assessment ratio analysis; TOPSIS. (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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