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Finding the Best Third-Party Logistics in the Automobile Industry: A Hybrid Approach

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  • Amir Karbassi Yazdi
  • Thomas Hanne
  • Juan Carlos Osorio Gómez
  • Jorge Luis García Alcaraz

Abstract

Given the current economic climate, many companies are considering outsourcing some activities to reduce costs and to focus on their core competency; thus, by adopting a competency-focused approach they enhance their chances to survive in a growing and competitive market. Third-Party Logistics (3PL) is a system that facilitates logistic activities. First, however, the organizations need to assess which companies are suitable for outsourcing. The aim of this paper is to depict a structural system for 3PL selection and validate it in real-world automobile companies. We use the Delphi method to determine criteria for 3PL selection and apply Evaluation by an Area-based Method for Ranking (EAMR) to prioritize the candidate alternatives. This method is used in combination with a Shannon Entropy based approach for determining the required weights. Computational analysis shows which criteria and companies have high priority, and based on that candidate alternatives for outsourcing are evaluated. The results suggest how automobile companies select 3PL companies and allocate their work to them.

Suggested Citation

  • Amir Karbassi Yazdi & Thomas Hanne & Juan Carlos Osorio Gómez & Jorge Luis García Alcaraz, 2018. "Finding the Best Third-Party Logistics in the Automobile Industry: A Hybrid Approach," Mathematical Problems in Engineering, Hindawi, vol. 2018, pages 1-19, November.
    • Handle: RePEc:hin:jnlmpe:5251261
    DOI: 10.1155/2018/5251261
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    Cited by:

    1. Chia-Nan Wang & Ngoc-Ai-Thy Nguyen & Thanh-Tuan Dang, 2023. "Sustainable Evaluation of Major Third-Party Logistics Providers: A Framework of an MCDM-Based Entropy Objective Weighting Method," Mathematics, MDPI, vol. 11(19), pages 1-27, October.
    2. Yazdi, Amir Karbassi & Wanke, Peter Fernandes & Hanne, Thomas & Abdi, Farshid & Sarfaraz, Amir Homayoun, 2022. "Supplier selection in the oil & gas industry: A comprehensive approach for Multi-Criteria Decision Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    3. Faruk Görçün, Ömer. & Chatterjee, Prasenjit. & Stević, Željko. & Küçükönder, Hande., 2024. "An integrated model for road freight transport firm selection in third-party logistics using T-spherical Fuzzy sets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    4. Ieva Meidute-Kavaliauskiene & Amir Karbassi Yazdi & Amir Mehdiabadi, 2022. "Integration of Blockchain Technology and Prioritization of Deployment Barriers in the Blood Supply Chain," Logistics, MDPI, vol. 6(1), pages 1-16, March.

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