Study And Practice Of Company A Overseas Projects 3PL Supplier Selection

Nowadays “go global” and participation in the overseas projects bidding has become the main business maintenance way of many Chinese companies. As more and more overseas projects have been taken by Chinese contractors, project logistics has already been considered as one major factor that influences the outcome of the whole project, and thus it’s the common practice for these companies to employ a 3PL supplier. However, most companies including Company A only come to know the scale economies’ low-cost effect of 3PL, and Company A is still applying single criteria of cost in supplier selection which always results in malicious low price competition, logistics service inefficiency and bad performance for the whole overseas project contract.To solve the 3PL supplier selection problem of Company A, this article sets up a twophase 3PL supplier selection procedure based on the actual situation of Company A and the characteristics of overseas projects. In the pre-audition phase, direct judgment method and benchmark method has been applied to cut down the numbers of the candidate suppliers based on qualitative and quantitative criteria combination. And before the final choice, Delphi method has been applied to fix down the supplier selection criteria so that suitable supplier could be chosen through AHP method basd on such multi criteria combination. The feasibility of such procedure has been testified by the application on Fossil Fired Power Plant Project SII 3PL supplier selection, while during the application this article also studies to include group decision in AHP method of the final choice phase. Finally by comparison of the logistics performance of Fossil Fired Power Plant Project SI and SII, this article verify the effectiveness of such procedure and the supplier selection methods involved in, and make a reference for the follow-up overseas projects of Company A.