A combined Approach of Analytic Hierarchy process and Decision-Making Trial and Evaluation Laboratory Methods for Evaluating Key Success Factors of Third-Party Logistics Service Providers

Abstract

This study aims to evaluate key success factors associated with the third-party logistics (3pL) service providers in Sri !1tru.This study used the systematic literature review and expert's opinlon to"identi$ tt. t.y success factors of third-party logistics industry in Sri Lanka. In total, 20 key rr...r, factors were obtained, and those key success factors were grouped into four categories as organization strategy, management and process, human resources and customer o-rientation' The study used the Q-sort technique to gr*p key-success factors into four categories and Analytic Hierarchy Process (AHf) to identiflz the priorities of thi key ,u"..r, factors. Decision Making Trial and Evaluation Laboratory (DEMATEL) method used to identify the interelationships among the key ,r.r.r, factors in each category' The result shows that business expansion, technology and automation, internationalizationof operations, management and leadership style are the most important key iuccess factors in the Sri Lankan third-party logistics industry' The outcomes ofthis study can help managers/practiiioners to formulate flexible decision strategies for performance better in their third-party logistics firms and experience a competitive advantage against the competitors.