Track: Logistics Management

Abstract

The present study intends to present a third party logistics service provider (3PL) selection method based on customer perception of the service quality and organizational performance. Customers usually rate 3PL service providers formally based on their service quality level, and informally based on their perception of the 3PL organizational effectiveness. Their selection decision can be either in function of the outcomes of both evaluations or in function of only one of them. In this paper we study the relationship between service quality and organizational effectiveness as perceived by customers and we propose a multi-criteria mathematical evaluation model that combines Analytical Hierarchy Process (AHP) and Data Envelopment Analysis (DEA). SERVQUAL dimensions are used as evaluation criteria of the service quality of the 3PL and the organizational effectiveness model dimensions are used to evaluate the 3PL organizational performance. AHP is then used to determine the relative weights of each criterion based on the experts rating, and a DEA analysis is performed to rank the third party logistics service providers.