A fuzzy TOPSIS methodology to support outsourcing of logistics services

Abstract

PurposeTo present a multi‐attribute approach for the selection and ranking of the most suitable 3PL service provider.Design/methodology/approachThe approach is based on the TOPSIS technique (Technique for Order Preference by Similarity to Ideal Solution) and the fuzzy set theory.FindingsA quantitative methodology based on a structured framework, for the selection of the most appropriate 3PL service provider.Research limitations/implicationsFuture research may attempt to compare the results of the methodology proposed with those of other Multi Attribute Group Decision Making methods. In particular, the selection tree could be developed in a multi‐tier hierarchy, trying to punctually address the relationships between the upper tier criteria and the lower level ones. With multi‐tier hierarchies, the performance of AHP could be compared with the one obtained with TOPSIS, not only with respect to “technical suitability” but also in terms of easiness to implement, shortcomings and general managerial viability.Practical implicationsFrom the application of the methodology to a real case, the approach proposed emerges as an appropriate tool, which makes it possible to easily and effectively rank alternatives. Conversely the most critical issue pointed out by the real case application is the preliminary “request of information” phase, which has to be given critical attention. The availability of a well structured body of knowledge about potential candidates emerged as the true discriminant for an effective analysis.Originality/valueThe originality of the paper is threefold: first, an original framework of criteria for the selection of the most suitable 3PL service provider is presented. Second, an original methodology based on a fuzzy TOPSIS approach is presented. Third, the practical implications and drawbacks are discussed by means of a real case application.

Third-Party Logistics (3pls) Provider Selection via Fuzzy Ahp and Edas Integrated Model

“…A clearly spelled-out quality program or the ISO 9001 standards certification surely characterize an ideal logistics partner (Bottani, Rizzi 2006). Commitment to continuous improvement, SQAS/ISO standards environment issues, and risk management are among its attributes (Aguezzoul 2014).…”

“…Information system usually contains both software and hardware (Bottani, Rizzi 2006). EDI, ERP, technology capabilities, technical capability, information accessibility, information security, availability of computer network, and informatization level are among its attributes (Aguezzoul 2014).…”

Logistics Cooperation: Integrated Logistics Services

“…Considering the concept's originality, usage and its analysis in the scientific literature (Gol, Catay 2007;Bolumole 2001;Bottani, Rizzi 2006;Bourlaki, Melewar 2011;Ferahani et al 2011;Neubauer 2011), the following two groups of party logistics could be distinguished: the basic and the derivative.…”

Integration of DEMATEL, ANP and DEA methods for third party logistics providers’ selection

“…Bottani and Rizzi (2006) applid fuzzy TOPSIS method for ranking and selecting the TPL providers. Qureshi et al (2007) used TOPSIS method with interval data for TPL providers.…”