An Integrated Process Model of Third Party Logistics Service Providers Selection under Supply Chain Management

Under the logistics out-sourcing competition enviroment, selection of distributors under SCM is more and more important. After analyzing the ordinary partner selection process, taking the character of logistics service providers selection in SCM into consideration, using group Decision-making and entropy method, a integrated selection method which combines selection process with evaluation indicator system is created. In the first phase, the model sifts through logistics service providers and obtains feasible providers with a threshold value based on the lowest requirement of logistics service providers' basic professional ability. In the second phase, it evaluates cooperation and mutual development ability for both sides. And then with the Delphi-entropy Weight Comprehensive Evaluation Model, sorts out optimal logistics service provider. This process model divides the choice process into two phases (core competition ability inspection, cooperation and the development ability inspection), systematically reflects indicator system's core business ability, cooperation and development ability. For this reason, it has better utility and rationality.