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An analytic network process approach to the selection of logistics service providers for air cargo

Author

Listed:
  • Y H Yang

    (Tsinghua University)

  • Y V Hui

    (City University of Hong Kong)

  • L C Leung

    (Chinese University of Hong Kong)

  • G Chen

    (Sun Yat-sen University)

Abstract

Nowadays, enterprises typically outsource their logistics needs to logistics agents, who have become vital partners in managing supply chains. The logistics needs in a supply chain consist of many different interrelated services, each with its own set of requirements and constraints. A logistics agent might specialize in the provision of a single logistics service or might provide a range of services. The selection of logistics agent(s) cannot be separated into a series of stand-alone selections as the decisions are interrelated. Decision makers must assess the merits of individual activity-agent combinations, as well as their interrelationships along the entire supply chain. Such an evaluation is non-trivial, because both tangible and intangible elements are involved. In this research, we model the selection problem using analytic network process, a multiattribute decision-making methodology suitable for assessing interdependent elements, both tangible and intangible. We examine the significance of integration and consolidation of shipments, the trade-offs between costs, benefits and risks within activities of the logistics process, and the differing roles of traditional freight forwarders and integrators.

Suggested Citation

  • Y H Yang & Y V Hui & L C Leung & G Chen, 2010. "An analytic network process approach to the selection of logistics service providers for air cargo," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(9), pages 1365-1376, September.
    • Handle: RePEc:pal:jorsoc:v:61:y:2010:i:9:d:10.1057_jors.2009.111
    DOI: 10.1057/jors.2009.111
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    References listed on IDEAS

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    2. Stefan Jovčić & Petr Průša & Momčilo Dobrodolac & Libor Švadlenka, 2019. "A Proposal for a Decision-Making Tool in Third-Party Logistics (3PL) Provider Selection Based on Multi-Criteria Analysis and the Fuzzy Approach," Sustainability, MDPI, vol. 11(15), pages 1-23, August.
    3. Qamar Farooq & Peihua Fu & Yunhong Hao & Tchamy Jonathan & Yanni Zhang, 2019. "A Review of Management and Importance of E-Commerce Implementation in Service Delivery of Private Express Enterprises of China," SAGE Open, , vol. 9(1), pages 21582440188, January.
    4. Sheng Teng Huang & Emrah Bulut & Okan Duru, 2019. "Service quality evaluation of international freight forwarders: an empirical research in East Asia," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-16, December.
    5. Ekici, Ali, 2013. "An improved model for supplier selection under capacity constraint and multiple criteria," International Journal of Production Economics, Elsevier, vol. 141(2), pages 574-581.
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    7. Prassida, Grandys Frieska & Hsu, Ping-Yu, 2022. "The harmonious role of channel integration and logistics service in Omnichannel retailing: The case of IKEA," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).

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