Selecting a Third Party Logistics Provider for international business can be a complex undertaking. It is a multi-criteria problem, with alternative ways to weigh the importance of the chosen criteria. This paper describes a method applying the Analytic Hierarchy Process (AHP) to weigh the criteria based on surveying experts in the field of international logistics and merchandise exports. The weighted criteria are then multiplied with attribute score matrices to arrive at a ranking of the 3PL’s under final consideration. Given our criteria, the weights and the attribute scores, it was found that two 3PL’s ranked very closely in the top position. It was also found that a simple ranking of the criteria can produce very similar aggregate weights provided the number of experts is high enough. The paper contains an extensive literature review on the usage of AHP and related methods in a logistics context.
Balasubramanian, Aparna and Udbye, Andreas, "Use of Analytic Hierarchy Process (AHP) for Selection of 3PL Providers" (2011). Engineering and Technology Management Student Projects. 639.