Third Party Logistics (3PL) Provider Selection with AHP Application

Abstract

Abstract Contemporarily, globalization causes increase in competitions and this fact leads the companies having to focus on their specialties in order to gain competitive advantage. In today's market conditions, the decision making process has become more complicated due to improvements in options, targets and environmental conditions parallel to technology. Particularly in the information technologies sector, options are increased to a great extent. The dependency of the companies to a single firm is no longer the case and the selection of the most suitable firm has become more complicated. In this study, logistics service provider selection for a company in Istanbul is selected as a decision making problem. The third party logistic (3PL) provider selection problem was modeled by one of the most frequently used multi criteria decision making method, AHP, which takes into account both tangible and intangible criteria. As a result of AHP, best alternative for 3PL provider is determined.