Decision model for prioritising logistics service provider selection criteria with sustainability consideration in the manufacturing industry

Manufacturing firms outsource their logistics activities to logistics service providers (LSP) to enhance efficiency, fulfil the demands of transportation, packaging, warehousing, inventory management, and to reduce logistics costs. Logistics service provider evaluation and selection is challenging as it involves multiple quantitative and qualitative criteria, alternatives and decision-makers (DM). Most studies focused on economic and operational efficiency factors whereas environmental and social sustainability factors are mostly neglected. The economic, operational, environmental and social criteria for LSP selection were identified from the literature and discussion with industry experts. The proposed novel stochastic step-wise weight assessment ratio analysis (S-SWARA) method for LSP selection criteria ranking takes into account the variability in criteria ratings by DM. A case study of the Indian manufacturing industry along with sensitivity analysis is demonstrated. The significance level plays an important role in criteria ranking. Implications for researchers and practitioners are also provided.