Selection of Functional Logistics Service Providers: AHP and DEMATEL Application

Despite the widespread establishment of logistics service providers, largest integrated providers (ILSPs) cannot offer customers a fully customised supply chain without outsourcing some functions, not their strengths, to local companies or specialised providers. Accordingly, this study investigates functional activities from integrators, ILSPs, by focusing on selection process for (FLSPs), especially attributes that affect decision. This uses hybrid multiple criteria decision-making approach, AHP-DEMATEL model. The findings include characterisation eight main factors affecting FLSPs’ decision, regarding degree particular importance and reciprocal influence inside system, ILSPs’ perspective. Additionally, dominance cost is emphasised through double-analysis using AHP DEMATEL methods, while remaining also indicated. final analysis results are discussed with conclusions detailed insights. Through study, decision-makers ILSPs enable review its standards.