THE SELECTION CRITERIA OF OUTSOURCING LOGISTICS SERVICE PROVIDER USING THE FUZZY ANALYTIC HIERARCHY PROCESS (FAHP): A CASE STUDY OF FURNITURE AND INTERIOR GOODS RETAIL BUSINESS

Abstract

This study aimed to explore the selection criteria of outsourcing logistics service provider and demonstrates the evaluation and selection process through a case study of furniture and interior goods retail business. Financial performance, quality of service, operational performance, firm attributes and compatibility determinants were determined as main criteria and deliberated informative of 20 sub-criteria. A mixed research methodology was adopted for data collection, pre-observation and semi-constructed interview were applied as qualitative approach, structed questionnaire were interviewed from 6 experts for quantitative approach using Fuzzy Analytical Hierarchy Process (FAHP) as a data analysis tool to prioritize the weight results. The result of this study revealed that quality of service is the most relative important criteria. This result could be beneficial on evaluation for selecting outsourcing logistics service provider in related characteristic of furniture and interior goods retail business