Grey Multi-Hierarchical Evaluation of Third Party Logistics Providers in the Environment of Supply Chain

The evaluation of third party logistics (3PL) providers is usually an incomplete information and complex multiple attribute decision-making problem, which is controlled by a number of interrelated factors and is difficult to be evaluated. This paper proposes a comprehensive evaluation model of 3PL providers, which combines the advantages of analytic hierarchy process (AHP), entropy method and grey system method to guarantee the accuracy and objectivity of weight coefficients. Firstly, a three-lever evaluation index system is designed. Secondly, the weight of every indicator is determined by integrating AHP with entropy method. Thirdly, the theory of grey system is adopted to give an overall and systematic evaluation. Finally, an example illustrates the comprehensive evaluation method is simple and effective.