Third-party logistics selection problem: A literature review on criteria and methods

• 67 papers on 3PL selection are analyzed in terms of criteria and methods.
• Majority of the studies is empirical but comparison between regions are scarce.
• 11 main groups of criteria are identified.
• Cost is the most widely used attribute, followed by relationship, services, and quality.
• Five categories of methods are identified but their use remains low.

This paper presents a literature review on Third-Party Logistics (3PL) selection decision in terms of criteria and methods. Based on the analysis of 67 articles published within 1994–2013 period, this review reveals that 3PL selection is empirical in nature and is related to a region/country, industrial sector, and logistics activities outsourced. In terms of 3PL selection criteria, 11 key criteria are identified; each one is defined by a set of attributes. Cost is the most widely adopted criterion, followed by relationship, services, and quality. In terms of methods for 3PL evaluation, they can be categorized in 5 groups, namely: MCDM techniques, statistical approaches, artificial intelligence, mathematical programming, and hybrid methods.