How To Select and Third Party Logisitcs Company

2576 Words6 Pages

A key to successful corporation with third-party logistics provider is organized steps that have to be taken in order to select and communicate with potential vendors. There are few models and techniques which help to choose a 3PL. Jharkharia and Shankar (2007) have used the analytic network process (ANP), but Jayanthi, Kocha & Sinha (1999) and Parkan and Wu (1998) have used operation competitiveness rating (OCRA) when choosing 3PL. Yung, Selen, Sum & Huo (2006) have used analysis of variance (ANOVA), which helps to measure financial performance of 3PL, Min and Joo (2006) have used data envelopment analysis (DEA), which benchmarks the efficiency. All models and methods mentioned above are mathematical; therefore do not comply with Rotterdam Business School Master in Logistics Management studies, which mean they cannot be used in this thesis. Steps needed to take when selecting and evaluating suppliers (Handfield, Monczka, Giunipero & Patterson, 2011): • Identify supplier evaluation category; • Assign a weight to each evaluation category; • Identify and weigh sub-categories; • Define scoring system for categories and sub-categories; • Evaluate supplier directly; • Review evaluation results and make selection decision; • Review and improve supplier performance continuously. Each step has to be taken carefully and considerately. The more precise selection process goes the biggest possibility to choose the most appropriate 3PL for the company needs. These authors have made models and criteria for choosing supplier and 3PL, but all methods can be applied also to choosing 3PL, as selection process and criteria can be changed and adapted. According to Cross (1995) good 3PL selection decisions may lead to lower costs and in... ... middle of paper ... ...rom my friend who works in logistics field and has access to logistics companies in Baltic States. E-mails were sent to 14 logistics companies asking few questions about their experience and opinions about shipping to Russia, questions can be seen in appendix 6, received answers only from 2 people whom I know personally and have worked together previously, which can be seen in appendix 6. E-mail was sent to Embassy of Russia in the Netherlands asking also about logistics to Russia and asking if could arrange a meeting, after not receiving an answer, phone calls were made and response was to wait for written answer. It was impossible to contact Russian shipping companies and clients because they do not have webpages or their legal name and brand name is different. I got a chance to contact one of them afterall with an e-mail in Russian, did not receive any answer.

More about How To Select and Third Party Logisitcs Company

Open Document