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Selection of logistics service provider: An analytic network process (ANP) approach

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  • Jharkharia, Sanjay
  • Shankar, Ravi

Abstract

This article presents a comprehensive methodology for the selection of a logistic service provider. The proposed methodology consists of two parts: (i) preliminary screening of the available providers, and (ii) analytic network process (ANP)-based final selection. The criteria, which are relevant in the selection of a provider, have been identified and used to construct an ANP model. Thereafter, the application of ANP for the final selection of a provider has been demonstrated through an illustrative example. The results of this example indicate that compatibility between the user and the provider companies is the most important determinant, which influences the final selection process. This approach also enables the decision-makers to better understand the complex relationships of the relevant attributes in the decision-making, which may subsequently improve the reliability of the decision.

Suggested Citation

  • Jharkharia, Sanjay & Shankar, Ravi, 2007. "Selection of logistics service provider: An analytic network process (ANP) approach," Omega, Elsevier, vol. 35(3), pages 274-289, June.
  • Handle: RePEc:eee:jomega:v:35:y:2007:i:3:p:274-289
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    References listed on IDEAS

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    1. Schenkerman, Stan, 1994. "Avoiding rank reversal in AHP decision-support models," European Journal of Operational Research, Elsevier, vol. 74(3), pages 407-419, May.
    2. Sarkis, Joseph, 1998. "Evaluating environmentally conscious business practices," European Journal of Operational Research, Elsevier, vol. 107(1), pages 159-174, May.
    3. Meade, Laura & Sarkis, Joseph, 1998. "Strategic analysis of logistics and supply chain management systems using the analytical network process," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(3), pages 201-215, September.
    4. Stank, Theodore P. & Daugherty, Patricia J., 1997. "The impact of operating environment on the formation of cooperative logistics relationships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(1), pages 53-65, March.
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