AN AHP-ELECTRE I APPROACH FOR 3PL-PROVIDER SELECTION

Aicha Aguezzoul () and Gilles Paché ()
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Aicha Aguezzoul: CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine
Gilles Paché: CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon

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Abstract: In today's increasingly competitive business world, many companies outsource their logistics activities to third-party logistics providers (3PL-providers) to reduce costs and focus on core competencies. To integrate 3PL-providers into their supply chains, companies must select the most efficient 3PL-provider that meets their requirements for reliability and responsiveness. In this research note, a hybrid method combining the analytic hierarchy process (AHP) and ELECTRE I is developed for multi-criterion decision-making to select 3PL-providers. The AHP method is first used to determine the weighting assigned to the evaluation criteria and to a set of 3PL-providers, and the ELECTRE I method is used to deduce the final list of the best 3PL-providers. This approach is then validated by applying it to a real company in France. The proposed approach can be used to help decision-makers and practitioners improve their 3PL-provider selection process by considering the criteria related to their requirements

Keywords: Logistics outsourcing; 3PL-provider; Multi-criterion decision-making (MCDM); ELECTRE I; AHP. (search for similar items in EconPapers)
Date: 2020-04
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Published in Rivista Internazionale Di Economia Dei Trasporti = International Journal of Transport Economics, 2020, 47 (1), pp.37-50

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04950113

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