Selection of Logistics Outsourcing Service Providers for Manufacturing Enterprises

Logistics outsourcing has been gradually developing into a strategy for logistics operation of enterprises. Hence, it is critical to select the logistics outsourcing service providers (LOSP). However, limited studies on selecting logistics providers according to outsourcing demands of manufacturing enterprises were done specifically. To satisfy the logistics outsourcing demands of manufacturing enterprises, this paper proposes a method based on Fuzzy Quality Function Deployment (FQFD) for selection of LOSP. First, the paper builds the evaluation HoQ for selecting LOSP and proposes to incorporate fuzzy theory into the HoQ. Second, the paper analyzes logistics outsourcing demands of manufacturers and summarizes them in service quality, responsiveness, reliability, economy and individualization. Next, the evaluation criteria system of LOSP is advanced from five dimensions of business alliance, logistics cost, logistics service quality, and logistics capacity. Finally, the paper takes the RB Company as a case to propose the process as well as algorithm of selecting LOSP based on FQFD. In the case study, the AHP method is applied to determine the weight of the logistic demands, and the triangular fuzzy numbers method is utilized to evaluate the correlation matrix between logistic demands and criteria of logistic providers. Thus, the appropriate transportation service provider is selected for RB by solving the fuzzy numbers.