Authors : Basheer Ahamed; Kalaiarasan

Volume/Issue : Volume 11 - 2026, Issue 4 - April

Google Scholar : https://tinyurl.com/52b278pk

Scribd : https://tinyurl.com/9822wpum

DOI : https://doi.org/10.38124/ijisrt/26apr1633

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : Selecting an appropriate logistics service provider (LSP) is among the most consequential decisions facing manufacturers of heavy industrial equipment. Unlike standard consumer goods sectors, organizations that produce highcapacity uninterruptible power supply (UPS) systems must contend with specialized cargo handling requirements, elevated transportation costs, regulatory compliance, and sustainability pressures — all of which compound the complexity of provider evaluation. This study develops and applies an Analytic Hierarchy Process (AHP) framework to guide LSP selection at Case Company, a subsidiary of the Legrand Group operating out of Chennai, India. Five decision criteria — compatibility, delivery performance, cost efficiency, management quality, and locational advantage — are identified through managerial interviews and a review of the supply chain decision-making literature. Two shortlisted providers, DP World and SafeExpress, are evaluated against these weighted criteria. The AHP computation yields a final composite score of 0.6519 for DP World against 0.3481 for SafeExpress, with all consistency ratios remaining well below the acceptable threshold of 0.10. Beyond the numerical result, the study highlights how structured multi-criteria decision-making transforms subjective managerial judgment into a transparent, auditable process. Practical implications for logistics managers, and directions for extending the model to additional criteria and alternative providers, are discussed.

Keywords : Analytic Hierarchy Process, Logistics Service Provider Selection, Supply Chain Management, Heavy Manufacturing, Outsourcing, SWOT Analysis, Case Company.

References :

1. Aguezzoul, A. (2014). Third-party logistics selection problem: A literature review on criteria and methods. Omega, 49, 69–78.
2. Boyson, S., Corsi, T., Dresner, M., & Rabinovich, E. (1999). Managing effective third-party logistics relationships. Journal of Business Logistics, 20(1), 73–96.
3. Chan, F. T. S., & Chan, H. K. (2004). Development of the supplier selection model — A case study in the advanced technology industry. Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 218(12), 1807–1824.
4. Gol, H., & Catay, B. (2007). Third-party logistics provider selection: Insights from a Turkish automotive company. Supply Chain Management: An International Journal, 12(6), 379–384.
5. Gura, S., & Gura, K. (2018). Promotion on marketing decision-making: Case study Albtelecom & Eagle Mobile. European Journal of Marketing and Economics, 1(3), 78–87.
6. Hertz, S., & Alfredsson, M. (2003). Strategic development of third-party logistics providers. Industrial Marketing Management, 32(2), 139–149.
7. Jharkharia, S., & Shankar, R. (2007). Selection of logistics service provider: An analytic network process (ANP) approach. Omega, 35(3), 274–289.
8. Langley, C. J., van Dort, E., Ang, A., & Sykes, S. R. (2002). Third-party logistics: Results and findings of the 7th annual study. Georgia Institute of Technology.
9. Mohanty, R. P., & Deshmukh, S. G. (1993). Use of analytic hierarchic process for evaluating sources of supply. International Journal of Physical Distribution & Logistics Management, 23(3), 22–28.
10. Razzaque, M. A., & Sheng, C. C. (1998). Outsourcing of logistics functions: A literature survey. International Journal of Physical Distribution & Logistics Management, 28(2), 89–107.
11. Saaty, T. L. (1980). The analytic hierarchy process. McGraw-Hill.
12. Saaty, T. L. (1996). Decision making with dependence and feedback: The analytic network process. RWS Publications.
13. Simon, H. A. (1957). Models of man: Social and rational. Wiley.
14. Stumpf, S. A., & London, M. (1981). Management promotions: Individual and organizational factors influencing the decision process. Academy of Management Review, 6(4), 539–549.
15. Tam, M. C. Y., & Tummala, V. M. R. (2001). An application of the AHP in vendor selection of a telecommunications system. Omega, 29(2), 171–182.
16. Yin, R. K. (1994). Case study research: Design and methods. SAGE Publications.
17. Zaim, S., Sevkli, M., & Tarim, M. (2003). Fuzzy analytic hierarchy based approach for supplier selection. Journal of EuroMarketing, 12(2), 147–176.