Selection Of Third-party Logistics Provider Based On GM-TOPSIS Combination Method

With the continuous development of economic globalization, the competitive ofinternational market is more increasingly, the demand of products for consumer ismore diverse, in order to adapt to changes in the environment, and enhance marketcompetitiveness, companies must focus more human, material and financial resourceson their own core business, the non-core business is to attend to. So, more and moreenterprises choose the third party logistics providers, and give them their non-corebusiness to manage, in order to improve their core competitiveness, reduce logisticscosts and increase profits. The success of logistics outsourcing is closely related withthe services and the strength of the third party logistics providers, therefore, the selectof the third party logistics providers is direct relationship between the enterpriselogistics outsourcing success.Firstly, this research explained the theory of third-party logistics, summarizedthe characteristics of the third-party logistics providers, and determined the process ofsupplier selection. Then through the study of existing indicators system, combinedwith the characteristics of business demand for the third-party logistics providers,extracted the13evaluation indexes, established a relatively scientific and reasonableindex system. Then, through the analysis of existing third-party logistics provider’sevaluation methods, summarized the advantages and disadvantages of each method,by comparison, selected the analytic hierarchy process to determine the weight, andcombined gray relational analysis method with TOPSIS, the formation of the GM-TOPSIS combination method to build a model to make a comprehensive evaluationfor the third-party logistics providers.Finally, this research selected Y company as an example, through the primarystage and the selection stage to determine the specific index data for candidatesuppliers, then utilized AHP suppliers for each candidate to determine the indexweight, and finally through the GM-TOPSIS combination method to evaluate andselect the candidate suppliers, in order to verify the effectiveness and feasibility of theIndicator System and the model.