Selection and evaluation of third party logistics service provider (3PLSP) by using an interpretive ranking process (IRP)

The concept of third-party logistics service provider (3PLSP) has been considered as an essential organizational philosophy to achieve profits. The purpose of this paper is to analyze and examine the contextual relationship among the critical success factors (CSF) of 3PLSPs practices in the cement manufacturing industry.

In this paper, the total 20 critical selection criteria with nine processes for the 3PLSPs, of an Indian cement manufacturing industry have been identified through an exhaustive literature review and opinions of the experts i.e. academics and industries. Interpretive ranking process (IRP) methodology has been presented to find out the rankings of the individual criteria and the mutual influence in the selection process.

The proposed model establishes the dominance of relationship among identified criteria, which plays a vital role in the 3PLSPs selection process which are experience in similar product, quality of management, information technology capacity, flexibility in operation and delivery, compatibility with the users.

An empirical research approach has not been used to collect primary data to rank different criteria for effective 3PLSPs implementation in the Industry. In this paper, an example of Indian cement industry is presented to show the real world applicability of the proposed model.

This model would help a decision maker to decide the issues related to a selection of 3PLSPs. The third party service provider comprises the use of external companies who controls and delivers logistic activities. The paper discusses very practical issues in an analytical manner, using the case base method.