A Study On Third-Party Reverse Logisticsprovider Evaluation And Selection

In the background of the perfection of laws for environment protection and people's increasing consciousness of environment protection and resource saving, companies start to deal with the problem of how to use the resource more efficiently. Under the policy for economic development, companies begin to focus on this totally new area-reverse logistics. However, most companies in China are not familiar with the work of reverse logistics, leading to misuse of reverse logistics in operation. In addition, pushed by the development of theory of outsourcing and core competitive power, companies begin to focus on improving their core competence but outsource their non-core work. It seems easy of outsourcing, but in practice, there still remain urgent problems for companies, such as how to choose the third logistics service provider, and how to evaluate the provider more subjectively and accurately in order to avoid the unnecessary risk and lose.In this paper, we discussed the problem of how to choose the right third reverse logistics service provider from the view of customs and we also put forward a proper solution. Firstly, based on our analysis of the related studies in the world, we introduced the term of reverse logistics and compared it to forward logistics to find out the differences between them. Then we explained the core concept for this study-third reverse logistics and set up the model for reverse logistics and the model for choosing the right reverse logistics service provider. Secondly, based on the analysis of the research in the world on the principles, steps and the influencing factors for choosing of third logistics service provider, we set up the evaluation system for choosing the proper third logistics service provider. Finally, through the study of recent evaluation methods, we summarized the merits and drawbacks for different methods and their area of use. Based on the study of these methods, we found that in the process of evaluation, we need to combine quantitative method with qualitative method and we set up the comprehensive evaluation model which bases on analytical hierarchy process (AHP) and the entropy weight coefficient method. In addition, through the analyzing of an example, we tested the validity of this model. This method may help the companies to choose the best third logistics service provide.Through the combination of AHP and the entropy weight coefficient method, we set up the evaluation system for choosing the third logistics service provider. This method is of great value both theoretically and practically. It provides the foundation for the companies to choose and evaluate the provider and provides the theoretical support and practical guide for the companies to carry out the work of reverse logistics and gain more profits.