Choosing a sustainable third party logistics service provider using analytic network process

This work?s aim is to develop a comprehensive Analytic Network Process (ANP) model that also considers the environmental and social criteria for the selection of a third party logistics (3PL) service provider. In order to reach this aim, firstly the literature concerning logistics, outsourcing, logistics outsourcing and 3PL is analyzed. Afterwards, Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP) which are two of the most important multiple criteria decision making methods are investigated thoroughly. In this context, the criteria which are relevant for the 3PL service provider selection have been identified through literature research and used in the development process of the proposed ANP model. In order to limit the complexity of the model in a rational way, it is recommended to first shortlist the potential alternatives and then to use the proposed ANP model for the final selection from the short listed alternatives.In the application part of this work, the application of the proposed ANP model is explained through a demonstrative example. The findings of the application of the model indicate that the Compatibility between the user and the 3PL service provider is the most important criterion that determines the outcome of the selection process. Furthermore it is also observed from the results that the Environmental Performance of the 3PL service provider is important enough to change the outcome of the model. Thus, it would be misleading not to consider the relevant Environmental Performance criteria. Another important finding is that when the feedbacks from the alternatives to the criteria are cut the outcome of the model changes. This finding emphasizes the importance of the feedback and indicates that if the feedbacks are not considered the outcome of the model can be misleading.Companies can use the proposed ANP model in order to select a sustainable 3PL service provider by simply changing the alternatives and integrating new criteria specific to their needs.Keywords: Logistics, third party logistics, logistics outsourcing, analytic network process, environmental performance.