Study On Logistics Service Supplier Selection In M Chemical Company

With the development of "core competency" in business running, the chemical producers always outsource their logistics demand to external professional companies because it is not the "core competency". These external professional companies are called logistics service provider. In real business running, how to select the most suitable logistics service provide through a scientific and efficient method is this article’ s study purpose.Though there are a lot of studies of supplier selection in the past, few could be used in real business. This article’s purpose is to find an approach of logistics service provider selection which is align with theories, suitable for chemical manufactures and easy to implement. The article will firstly analyze the current studies of supply selection criteria definition and methodology; then summarize the advantages and weakness; after it, the article will analyze the current status of logistics service providers selection for chemical manufactures and summarize its characters; based on the above summaries, the article will find out one of the existing approaches which is most suitable for chemical manufactures selecting logistics service suppliers; then the article will develop a new approach based on the above selected one and make it be scientific, objective, easy to implement and high trustable. This new method is developed from the concept of "the lowest total cost". It will firstly find a reasonable mechanism to transform non-cost factors into ratio of cost adjustment, then the supplier’ s total cost will be adjusted base on this ratio, the final supplier selected is the one who has the lowest total cost after adjustment. With references to the selection criteria assessment, it will use the method of "expert evaluation". And for selection criteria weighing calculation, it will use the method called "Analytic Hierarchy Process". At last the article will prove the effectiveness of this new approach through real case study.