Prioritizing the selection criteria of a third-party logistics company using the best-worst method

One of the most effective solutions for reducing logistics costs for businesses is outsourcing logistics services to Third-Party Logistics (3PL) companies. However, selecting the most appropriate 3PL partner is a task that requires a detailed assessment of many criteria and alternatives. The primary objective of this study is to develop an integrated Multi-Criteria Decision-Making (MCDM) framework to assist organizations in selecting the most suitable 3PL provider. Outsourcing logistics services to 3PL companies is widely recognized as an effective strategy for reducing logistics costs. This research employs the Best-Worst Method (BWM) to assess and prioritize these criteria, which are grouped into five main categories commonly cited in the literature: Cost, customer service, Corporate Social Responsibility (CSR), technology, and operational efficiency. The proposed framework was implemented in a company evaluating three suppliers, using both the AHP and BWM methods to compare alternatives and perform a sensitivity analysis for each criterion. This work’s findings show the parameters of considerable importance are “operation efficiency (0.374),” “customer service (0.374)”, “cost (0.102)”, “technical (0.102)”, and “corporate responsibility (0.048)”. Although Supplier A and Supplier B show minimal differences in the most critical criteria, operational efficiency and customer service, the application of the proposed integrated framework, which considers all relevant factors, including cost, indicates that selecting Supplier B and placing a minimum order could result in a cost reduction of up to 5%.