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2009 IEEE International Conference on Industrial Engineering and Engineering Management

DOI: 10.1109/ieem.2009.5373059

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Strategic logistics outsourcing: an integrated QFD and AHP approach

Proceedings article published in 2009 by D. J. Bennett, William Ho ORCID, K. L. Mak, K. B. Chuah, Carman K. M. Lee, Matthew J. Hall
This paper is available in a repository.
This paper is available in a repository.

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Abstract

Third-party logistics service providers (3PLs) play a vital role in contemporary supply chain management. Evaluation and selection of the right 3PLs depends on a wide range of quantitative and qualitative criteria rather than cost-based factors. Although various multi-criteria decision making approaches have been proposed, they have not considered the impact of business objectives and requirements of company stakeholders on the evaluating criteria. To enable the "voice" of company stakeholders is considered, this paper develops an integrated approach for selecting 3PL strategically. In the approach, multiple evaluating criteria are derived from the requirements of company stakeholders using a series of house of quality (HOQ). The importance of evaluating criteria is prioritized with respect to the degree of achieving the stakeholder requirements using analytic hierarchy process (AHP). Based on the ranked criteria, alternative 3PLs are evaluated and compared with each other using AHP again to make an optimal selection.