An analytical approach for selection of a logistics provider

Purpose – CAPARO India Ltd., a leading player in the automotive components industry in India, has multiple logistics providers for export‐import logistics at its five manufacturing locations in north India. Dealing with multiple logistics provider restricts negotiation power, service commitments, customer satisfaction and leads to higher transportation cost and time delays due to multiple points of contact. The purpose of this paper is to document CAPARO's aim of selecting one common logistics provider for all their units in north India for export‐import logistics, warehousing, packaging and value added services in order to minimise all the above stated problems. Design/methodology/approach – This paper, in the form of case study, provides a structured decision‐making model for selection of the most suitable logistics provider using the analytic hierarchy process (AHP). With this technique, several criteria like freight charges, inland charges, schedule flexibility, warehousing capacity, track and trace system, port presence and custom clearance are considered that make it possible to select a suitable logistics provider. Findings – The case example establishes that AHP can be effectively used to analyse the logistics provider selection, which is based on real data. Research limitations/implications – The case extends the scope for future researchers to enhance the criteria for selection of any logistics provider. Practical implications – The paper provides practitioners with a systematic analysis needed to make this important decision. Originality/value – The paper is based on real data and information.