CAPARO : A Structured Approach for Selection of a Common Logistics Provider

CAPARO India Pvt. Ltd. is one of the leading players of automotive components industry in India. It has multiple logistics providers for export-import logistics at its five manufacturing locations in north India. Dealing with multiple logistics provider restricts negotiation power, service commitments, customer satisfaction and leads to higher transportation cost and time delay due to multiple points of contact. CAPARO aims to select one common logistics provider for all their units in north India for export-import logistics, warehousing, packaging and value added services in order to minimise all the above stated problems. This case study provides a structured decision-making model for selection of the most suitable logistics provider using the Analytic Hierarchy Process (AHP). With this technique, several criteria like freight charges, inland charges, schedule flexibility, warehousing capacity, track and trace system, port presence and custom clearance are considered that make it possible to select suitable logistics provider. The case example establishes that AHP can be effectively used to analyse the logistics provider selection. It is expected to provide practitioners with a systematic analysis needed to make this important decision