Third-Party Logistics Provider Selection in the Industry 4.0 Era by Using a Fuzzy AHP and Fuzzy MARCOS Methodology

Abstract

In the dynamic landscape of Industry 4.0, the selection of Third-Party Logistics Providers (3PLs) has emerged as a critical strategic decision for businesses seeking to optimize their supply chain operations. This paper aims to develop a new hybrid Multi-Criteria Decision-Making (MCDM) approach based on Industry 4.0 components for selecting the best 3PL provider by integrating Fuzzy Analytical Hierarchy Process (FAHP) and Fuzzy Measurement Alternatives and Ranking according to Compromise Solution (FMARCOS). The criteria for 3PL evaluation and selection are determined with respect to literature studies and experts’ consultation. In the proposed approach, judgments of different experts are expressed by linguistic terms based on fuzzy numbers. The criteria weights are calculated by applying FAHP, then the ranking and selection of the best potential 3PL provider have been done using FMARCOS. A case study from a manufacturing company is illustrated. Finally, sensitivity analysis on the criteria weights and comparative analysis among MCDM methods (FMABAC, FWASPAS, FCOSOSO, FSAW, FCOPRAS, FTOPSIS and FVIKOR) are conducted for the validity of the results. The results indicate that the integrated FAHP and FMARCOS model offers a robust and adaptable framework for 3PL selection, enabling companies to navigate the complexities of Industry 4.0 with a strategic and informed approach. This research contributes to the evolving discourse on logistics optimization in the era of Industry 4.0 and provides practical insights for industry practitioners, academics, and policymakers.

Keywords

• Manufacturing
• Industry 4.0
• 3PL selection
• FAHP
• FMARCOS