Analytical modeling of third party service provider selection in lead logistics provider environments

Purpose – The purpose of this paper is to model the choice parameters for selection of third party logistics service providers in global lead logistics provider (LLP) environments. Design/methodology/approach – Analytical hierarchy process (AHP) modeling has been carried out after questionnaire‐based survey, results of which were moderated with inputs from experts from industry and academics. Findings – The findings of this study revealed the under lying sub‐parameters which come into play while rating/choosing or evaluating service providers in the global LLP situations of today. Research limitations/implications – The number of service providers, selection criteria and the number of members of the AHP assessment team have been identified as some of the limitations of the present work. Practical implications – The study has significant practical implications for the service providers and for the organizations which have to choose them. The fourth party logistics scenario entails this choice to be made by the LLP. Originality/value – This paper deals with inputs from the Indian LLPs and the Indian service providers. With India emerging as the second most important outsourcing destination after China, the assessment of parameters specific to this country while modeling is of practical importance to LLPs beyond the political boundaries of India also.