To Explore the Relationship of Factors in the Third Party Logistics Industry using DEMATEL

Abstract

The 3PL market is a growing trend around the world, but it is already grown in the UAE, especially in Dubai, where it is having very high market and is growing fast in Abu Dhabi like Dubai. The DEMATEL approach is used to develop an important relationship between dimension and criteria. It uses the matrix and related theories of math to calculate the cause and effect of the degree on each variable. This approach is commonly accustomed to solve various sorts of complex studies which will effectively explain the complex structure and supply the reasonable choices of problem-solving. The primary motivation behind this paper is to break down the components impacting customers' practice in third-party logistics industry by applying DEMATEL strategy. Fourteen factors namely Responsiveness, Reliability of the 3PL provider, Quality of operation, Cost, Flexibility, Financial stability, Delivery time, Ability to meet customer needs, Document accuracy, Storage facilities, Good communication, Attitude towards customers, Technical competence and Reputation are chosen from many different studies. In this research, six experts were involved with a request to evaluate the degree of direct impact between two variables by means of a pair comparison. The results showed the best three significant factors influencing delivery time, quality of operation and cost. Besides, cause and effect connection outlines are additionally built to increase the understanding of the intuitive connection between those criteria. It is discovered that reputation has the most effect on the other factors and cost gets the most effect from different components. At last, this article gives realistic guidelines for the 3PL market in Abu Dhabi, UAE.