Topic > How to Select a Third-Party Logistics Company

A key to a successful business with a third-party logistics provider is organizing the steps you take to select and communicate with potential suppliers. There are few models and techniques that help to choose a 3PL. Jharkharia and Shankar (2007) used analytical network process (ANP), but Jayanthi, Kocha, and Sinha (1999) and Parkan and Wu (1998) used operational competitiveness rating (OCRA) when choosing 3PL. Yung, Selen, Sum, and Huo (2006) used analysis of variance (ANOVA), which helps to measure the financial performance of 3PL, Min and Joo (2006) used data envelopment analysis (DEA) , which measures efficiency. All the models and methods mentioned above are mathematical; therefore they do not comply with the studies of the Master in Logistics Management of the Rotterdam Business School, which means that they cannot be used in this thesis. Necessary steps to take when selecting and evaluating suppliers (Handfield, Monczka, Giunipero & Patterson, 2011): • Identify the supplier evaluation category;• Assign a weight to each evaluation category;• Identify and weight the subcategories; • Define a scoring system for categories and subcategories; • Evaluate the supplier directly; • Examine the evaluation results and make selection decisions; • Continuously review and improve supplier performance. Each step must be taken with care and consideration. The more precise selection process offers the greatest opportunity to choose the most appropriate 3PL for the company's needs. These authors created models and criteria for supplier and 3PL selection, but all methods can also be applied to 3PL selection, as the selection process and criteria can be modified and adapted. According to Cross (1995) good 3PL selection decisions can lead to lower costs and in......middle paper......from my friend who works in logistics and has access to logistics companies in the Baltic States . Emails were sent to 14 logistics companies with some questions about their experience and opinions on shipping to Russia, the questions can be seen in Appendix 6, I received answers only from 2 people I know personally and have worked together with above, which can be viewed in Appendix 6. An email was sent to the Russian Embassy in the Netherlands also inquiring about logistics for Russia and asking if it was possible to arrange a meeting, after receiving no response, phone calls were made and the response was to wait for a written response. It was impossible to contact Russian shipping companies and customers because they have no web pages or their legal name and brand are different. After all, I had the opportunity to contact one of them with an email in Russian, but I did not receive any response.