Strategic logistics outsourcing: an integrated QFD and AHP approach

William Ho, K.L. Mak, K.B. Chuah, Carman K.M. Lee, Matthew J. Hall

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Third-party logistics service providers (3PLs) play a vital role in contemporary supply chain management. Evaluation and selection of the right 3PLs depends on a wide range of quantitative and qualitative criteria rather than cost-based factors. Although various multi-criteria decision making approaches have been proposed, they have not considered the impact of business objectives and requirements of company stakeholders on the evaluating criteria. To enable the "voice" of company stakeholders is considered, this paper develops an integrated approach for selecting 3PL strategically. In the approach, multiple evaluating criteria are derived from the requirements of company stakeholders using a series of house of quality (HOQ). The importance of evaluating criteria is prioritized with respect to the degree of achieving the stakeholder requirements using analytic hierarchy process (AHP). Based on the ranked criteria, alternative 3PLs are evaluated and compared with each other using AHP again to make an optimal selection.
Original languageEnglish
Title of host publicationProceedings of the IEEE International Conference on Industrial Engineering and Engineering Management, 2009. IEEM 2009
PublisherIEEE
Pages1434-1438
Number of pages5
ISBN (Print)978-1-42444869-2
DOIs
Publication statusPublished - Dec 2009
EventIEEE international conference on industrial engineering and engineering management, 2009 (IEEM 2009) - Hong Kong, China
Duration: 8 Dec 200911 Dec 2009

Conference

ConferenceIEEE international conference on industrial engineering and engineering management, 2009 (IEEM 2009)
CountryChina
CityHong Kong
Period8/12/0911/12/09

Keywords

  • logistics outsourcing
  • third-party logistics
  • service providers
  • evaluation
  • selection
  • analytic hierarchy
  • process
  • quality function deployment

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  • Cite this

    Ho, W., Mak, K. L., Chuah, K. B., Lee, C. K. M., & Hall, M. J. (2009). Strategic logistics outsourcing: an integrated QFD and AHP approach. In Proceedings of the IEEE International Conference on Industrial Engineering and Engineering Management, 2009. IEEM 2009 (pp. 1434-1438). IEEE. https://doi.org/10.1109/IEEM.2009.5373059