Selection of third party logistics providers based on modified grey multi-hierarchical evaluation method

The most crucial process of success in the logistics outsourcing is the selection of third party logistics (3PL) providers. So, the evaluation indicators system of 3PL providers has become a very important subject. In this paper, first of all, a three-lever evaluation indicators system is designed based on the long term cooperation between manufacturers and 3PL providers. Then, the modified grey multi-hierarchical comprehensive evaluation method is adopted to give an overall and systematic evaluation for the selection of 3PL providers. And the weight of every evaluation indicator is determined by integrating analytic hierarchy process (AHP) and entropy method in the process of evaluation. Finally, an instance illustrates the comprehensive evaluation method is simple and effective.