Assessment of Third-Party Reverse Logistics Provider Through the SWARA-WASPAS Integrated Framework

Abstract

The selection of the most suitable third-party provider for reverse logistics (RL) activities is a key factor in initiating effective RL processes. However, the process of identifying the optimal third-party provider involves navigating through various conflicting objectives and criteria. This task is intricate and time-consuming, necessitating the application of multi-criteria decision-making (MCDM) approaches. This study addresses the evaluation and selection of the best 3PRLP by introducing a comprehensive MCDM framework. Therefore, this study aims to assist a manufacturer specializing in milk and dairy products who has opted to transfer its reverse logistics operations to a logistics service provider. The objective is to aid them in selecting the most suitable 3PRLP. The proposed framework incorporates the SWARA (Step-wise Weight Assessment Ratio Analysis) technique for determining weights and the WASPAS (Weighted Aggregated Sum Product Assessment) method for thoroughly evaluating alternatives. In this study, a panel of four experts made a joint decision after identifying six criteria and five alternatives. The research concluded that the reverse logistics cost (C1) emerges as the most pivotal factor, with the service quality of reverse logistics (C3) being recognized as the least significant criterion. As a result, A1 stands out as the top choice among the 3PRLP.