Evaluation of Third Party Logistics Providers Considering Social Sustainability

Abstract

In this paper, we investigated a third-party logistics (3PL) provider evaluation problem considering social sustainability as one of the important evaluation criteria. Since the 3PL service is mainly dependent on both transport vehicles and employees, managing them from the viewpoint of social sustainability has become a critical issue. Thus, 3PL providers need to be concerned about not only the service price or quality but also issues related to social sustainability. In line with this trend, we defined the social sustainability of 3PL providers and related evaluation criteria. In addition, a fuzzy analytic hierarchy process (AHP) was used as a main evaluation framework to help decision-makers determine the relative importance of each criteria or alternative using linguistic terms. To show the feasibility of the proposed criteria and evaluation framework, we presented the illustrative example based on a real-world case. The results showed that the proposed approach could be a good alternative to conduct evaluations, and the related sensitivity analysis, considering social sustainability.