A COMPARATIVE ANALYSIS OF SEVENTH PARTY LOGISTICS SERVICE PROVIDER USING HYBRID MODELS: AHP- ELECTRE, AHP-TOPSIS AND AHP-PROMETHEE

Abstract

Businesses, particularly those who are in the manufacturing sectors, prefer to concentrate on their core competencies. As a result, they must choose process to outsource their logistics Seventh-Party Logistics Service Providers (7LPs). Therefore, the assessment and choice of a seventh-party logistics service provider capable of efficiently offering logistics operation services to the companies is the most crucial strategic concern for top management. Using both qualitative and quantitative data, decision-making models assist decision-makers in setting future goals. This research paper's primary goal is to develop a decision-supporting tool that will assist the management of the organization in selecting and evaluating different seventh-party logistics service providers through a hybrid approach that incorporates the Analytical Hierarchy Process (AHP) along with other MCDM methods like ELECTRE, TOPSIS and PROMEHTHEE. The current study compares three models and provides a general knowledge of MCMD. In this study, the weights of the criterion have been estimated using the AHP approach after the selection criteria of 7PL providers have been established. Later, the MCDM techniques like ELECTRE, TOPSIS and PROMETHEE are used to arrive at the ultimate ranking outcomes. This study offers decision makers a rigorous and scientific decision support system that is helpful for making complex and strategic decisions. There is also a numerical example provided.