Recently companies have been focusing their resources on core competencies in order to sustain their competitive advantages in the business environment and outsource non-core activities such as logistics activities to the third-party logistics (3PL) providers. The purpose of traditional outsourcing was just for reducing logistics cost whereas recent outsourcing is being performed not only for reduced logistics cost but also for improved customer service with the help of 3PL providers.
Selecting a 3PL provider, however, should be implemented from a strategic perspective considering dynamic business market and improved customer needs.
Evaluating and selecting the proper 3PL provider is a multi-criteria decision-making problem with multiple decision factors.
The AHP (Analytic Hierarchy Process) and ANP (Analytic Network Process) techniques which were devised to solve the decision-making problem are hierarchy decision-making techniques.
Although AHP and ANP techniques are commonly used approaches to solve the decision-making problem, these techniques are apply crisp numbers such as 9 point scale to make decisions. So it is difficult to avoid the subjective and vague judgement.
In the thesis, fuzzy set theory, which mathematically handles the uncertainty, was inte
Ⅰ. Introduction 1
1.1 Research Background 1
1.2 Research Objectives 2
1.3 Research Structure 3
Ⅱ. Literature Review 4
2.1 Definitions of Third-party Logistics (3PL) 4
2.2 Logistics Outsourcing 7
2.2.1 Definition and Drivers of Outsourcing 7
2.2.2 Outsourcing Activities 7
2.2.3 Pros and Cons of Outsourcing 9
2.3 Selection Factors of Third-Party Logistics (3PL) 11
2.4 Third-party Logistics (3PL) Provider Selection Methods 16
Ⅲ. Research methodology 20
3.1 Research Framework 20
3.1.1 Questionnaire Survey Process 21
3.1.2 Data Collection 25
3.1.3 Data Reduction 30
3.1.4 Validity and Reliability: Confirmatory Factor Analysis (CFA) 32
3.2 AHP and ANP Method 36
3.3 Fuzzy Set Theory and fuzzy AHP and fuzzy ANP Method 37
3.3.1 Fuzzy Set Theory 37
3.3.2 Fuzzy AHP and fuzzy ANP 39
3.3.3 Fuzzy Extension of AHP and ANP 43
Ⅳ. Application of fuzzy AHP and fuzzy ANP Methodology 46
4.1 Fuzzy AHP Approach 46
4.2 Fuzzy ANP Approach 52
4.3 Super-Matrix Formation 55
4.4 Evaluation of Third-party Logistics (3PL) Providers 59
Ⅴ. Results 62
5.1 Compare the priority of main selection factors analyzed by fuzzy AHP and fuzzzy ANP 62
5.2 Selection the best 3PL service provider 64
Ⅵ. Conclusions 68