Selection of a Logistics Service Provider Based on Analytic Hierarchy Process (AHP) Approach

by Heshan Ye

Institution: Högskolan i Gävle
Year: 2014
Keywords: Analytic Hierarchy Process (AHP); Gevalia; Logistics Service Providers (LSPs); Selection; Outsourcing Logistics; Engineering and Technology; Teknik och teknologier; Industrial management and logistics – bachelor’s programme (swe or eng); Industriell ekonomi (sv eller eng); Industriell ekonomi; Industrial engineering and management
Record ID: 1360312
Full text PDF: http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-16621


Logistics outsourcing has been applied in practices by enterprises for decades, but its efficiency is always restricted because logistics service providers (LSPs) often only have a single function such as delivery or warehousing. In the last few years, LSPs have upgraded their capabilities to support some other logistics services including value-added services, materials management, information-related services etc. The purpose of this thesis is to identify the differences between self-built logistics system and outsourcing logistics system by using the Strengths Weaknesses Opportunities Threats (SWOT) strategic analysis; and figure out how to apply the Analytic Hierarchy Process (AHP) to make an appropriate selection among LSPs that based on the single-case study of Gevalia. Both quantitative and qualitative methods have been used in this study, authors expect to describe and explore the application of AHP approach regarding to the case company which implements outsourcing logistics system. Accordingly, it could be a good idea for case company to implement the mixed mode of self-built and outsourcing logistics system after using the SWOT strategic analysis. In addition, the production and logistics manager of case company emphasized that the five selection criteria including “compatibility”, “delivery performance”, “location”, “management” and “cost” should be considered as a priority among other different criterion when he selected a LSP. As a result, it will be efficient and effective for us to simulate a best decision for those industrial manufacturing enterprises to achieve a path regarding to the selection of the best logistics partner that based on the significant AHP approach.