An Evaluation Framework of Logistics Service Provider Selections in Vietnam

Abstract

This study defines a multi-criteria decision-making process involving the balance competition of quality, cost, and delivery time during the phase of selection, based on the analytic hierarchy process technique combined with fuzzy concept. Through a series of interview and survey of logistics practitioners and international forwarders in Vietnam, the impact factors on the selection of logistics service providers are identified and analyzed. In accordance with our findings, tangibility and technology and development potential are the first two key factors during the selections, which proves that providing modern technology and advanced equipment to customer leads to a success of logistics service and the long-term relationship between the LSPs and consumers are important. Moreover, compatibility, electronic data interchange, extra costs, and freight price are other key factors to determine the logistics service providers. Conversely, storage capacity and corporate culture would not significantly concern by the survey respondents in this case study.