Selecting a logistics service provider: a definition of criteria that consider the requirements of an external competitive environment

A large number of criteria, the very diverse use of terminology and different classifications of criteria used to select a logistics service provider (LSP) reflect the lack of consensus in defining criteria. Moreover, whether the criteria are consistent with external requirements has not been analysed, which are vitally important for the success and competitiveness of the supply chain. This paper therefore presents a carefully prepared and evaluated classification system of criteria aligned with the requirements of the external environment. A multi-stage methodological approach was used. Selection criteria obtained from the systematic review of literature were first carefully analysed to find potential shortcomings. After that, a cluster method was used to reduce the numer of criteria and to aggregate similar criteria. A Pareto analysis (75/25 rule) was further used to rank the criteria according to their frequency of use and consequently according to importance. The obtained categories of criteria (vitally important criteria (C1), very important criteria (C2), important criteria (C3) and less important criteria (C4), using the AHP method, were compared by the experts to define their weights. This paper summarizes and extends the recent literature through a six-step methodological approach and proposes a new classification system of selection criteria