Third-Party Logistic Selection for Logistic Aggregator Company using Multi-Criteria Decision Making

Abstract

The customer of Aggregator Company for Logistics (ACL) faces a problem when creating an order in the aggregator logistics platform. They have difficulty making an order as there are a lot of third-Party Logistic (3PL) alternatives available but they do not have any references for which 3PL they should select. This study helps the customer to choose the best 3PL by determining the suitable criteria. The study's objective is to build a Multi-Criteria Decision-Making (MCDM) model for 3PL assessment based on historical data. To construct the model in doing the assessment, a combined model based on the Fuzzy Analytic Hierarchy Process (F-AHP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) Was methodically operated. F-AHP was used to weigh the criteria and TOPSIS functioned to rank and score the 3PL alternatives. Sensitivity analysis is also performed to verify the robustness of the proposed model. This study was taken place in one of the Indonesian ACLs and the model could be beneficial for Indonesian ACL in evaluating, selecting, and recommending the best 3PL partner.