Strategic logistics outsourcing: An integrated QFD and fuzzy AHP approach

This paper develops an integrated approach, combining quality function deployment (QFD), fuzzy set theory, and analytic hierarchy process (AHP) approach, to evaluate and select the optimal third-party logistics service providers (3PLs). In the approach, multiple evaluating criteria are derived from the requirements of company stakeholders using a series of house of quality (HOQ). The importance of evaluating criteria is prioritized with respect to the degree of achieving the stakeholder requirements using fuzzy AHP. Based on the ranked criteria, alternative 3PLs are evaluated and compared with each other using fuzzy AHP again to make an optimal selection. The effectiveness of proposed approach is demonstrated by applying it to a Hong Kong based enterprise that supplies hard disk components. The proposed integrated approach outperforms the existing approaches because the outsourcing strategy and 3PLs selection are derived from the corporate/business strategy.

► We develop an integrated approach for the strategic logistics outsourcing.
► We consider strategic intent of company through the involvement of all stakeholders.
► We ensure consistent and reliable performance measurement.
► We test the effectiveness of the proposed approach using a real case.
► We prove that the proposed integrated approach outperforms the existing approaches.