How to select optimal TPL providers

Abstract: For a long time logistics have been an important part of industrial activities. Dated from 1970s, with the emergency of third party logistics (TPL), companies began to think about insourcing or outsourcing. As the development and expansion of TPL, outsourcing logistics activities to third party logistic have became a worldwide trend. Companies could gain a competitive advantage from outsourcing. Outsourcing to TPL providers could make companies focus on their core tasks. An appropriate TPL provider could apply technology and expertise, which help companies reducing costs and improving services. Flexibility and efficiency can also be achieved by adopting good TPL providers. In this sense, helping companies to make outsourcing decisions and to select optimal TPL providers is meaningful. The purpose of this thesis is to bring a holistic view of third party logistics and to build models for companies to select optimal TPL providers. To achieve the purpose, relevant literatures were reviewed to gain theoretical bases. Qualitative and quantitative research methods are both used in the thesis. Two models for selecting TPL providers were built in the thesis. One was qualitative model that contained four steps: defining problems, formulate criteria, qualify selection process and finally make decision. The other one was a quantitative model with DEA method. It contained six steps: define problem, select candidates, select criteria and indicators, determine input and output and collect data, calculate the efficiency and make final decision. Each model was applied on a case study to examine its validity and feasibility. Both advantages and disadvantages were found during the case studies. The conclusion is that both of models could be used for companies and it allows a company to choose the most suitable one.