Criteria affecting the selection of logistics service provider for retail small and medium enterprise in Thailand

Abstract

© IEOM Society International. Small and medium enterprises (SMEs) in the retailer business are important for Thailand. It is one of the driving forces of the country's economic and social development. As a result, the retail business is more competitive both in terms of product quality and reducing lead time of customer responsiveness. The organization has a great management of logistics which have a comparative advantage. Many organizations usually choose outsourcing company to manage their logistics activities. Because logistics providers have more resources, experience, and efficiency than their own. The objective of this paper is to propose criteria for selecting the logistics service provider to the small and medium enterprises in the retail. The beginning, literature reviews were searched and verified concerning the criteria from the related retail industry. Then, the researcher ranked the frequency of the decision criteria discussed in descending order. The top 5 from 89 criteria are Cost/Price, Service quality, Financial Performance, Delivery Performance, and Information technology/System. In this paper, the selected criteria from the top 20, the first to eleventh criteria would be the highest frequencies, respectively. The others would be considered appropriate due to the few frequencies of duplicate criteria. The result from this paper shows that there are 8 main criteria and 5 sub-criteria to suggest the small and medium enterprises in the retail. The criteria would be applied for weighting by Analytic Hierarchy Process (AHP) is one of Multi Criteria decision making method that paper present sample weighting as a guide for those interested in education and the organization needs to be used to rank the alternative of logistics service provider.