An analytic network process approach to the selection of logistics service providers for air cargo

Nowadays, enterprises typically outsource their logistics needs to logistics agents, who have become vital partners in managing supply chains. The logistics needs in a supply chain consist of many different interrelated services, each with its own set of requirements and constraints. A logistics age...

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Bibliographic Details
Published in:The Journal of the Operational Research Society 2010-09, Vol.61 (9), p.1365-1376
Main Authors: Yang, Y H, Hui, Y V, Leung, L C, Chen, G
Format: Article
Language:English
Subjects:
Air freight
Air freight service
Air transportation
Alliances
ANP
Applied sciences
Business and Management
Decision making
Decision making models
Decision theory. Utility theory
Exact sciences and technology
Freight
Freight forwarding
Ground transportation
Information systems
Information technology
Logistics
Logistics management
Management
Operational research and scientific management
Operational research. Management science
Operations Research/Decision Theory
Outsourcing
Quality of service
Shipments
Studies
Suppliers
Supply chain management
Supply chains
Theoretical Paper
Theoretical Papers
Third party
Trucking
Warehousing
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Summary:Nowadays, enterprises typically outsource their logistics needs to logistics agents, who have become vital partners in managing supply chains. The logistics needs in a supply chain consist of many different interrelated services, each with its own set of requirements and constraints. A logistics agent might specialize in the provision of a single logistics service or might provide a range of services. The selection of logistics agent(s) cannot be separated into a series of stand-alone selections as the decisions are interrelated. Decision makers must assess the merits of individual activity-agent combinations, as well as their interrelationships along the entire supply chain. Such an evaluation is non-trivial, because both tangible and intangible elements are involved. In this research, we model the selection problem using analytic network process, a multiattribute decision-making methodology suitable for assessing interdependent elements, both tangible and intangible. We examine the significance of integration and consolidation of shipments, the trade-offs between costs, benefits and risks within activities of the logistics process, and the differing roles of traditional freight forwarders and integrators.
ISSN:0160-5682
1476-9360
DOI:10.1057/jors.2009.111