of Freight Forwarders (FF) in the industry is a difficult decision-making
problem influenced and affected by various factors, which are sometimes opposite
in nature. Freight Forwarding industry is industry mostly run on the sub-lending
through a long network of service providers. This makes the decision making
even more difficult as the reliability of service provider cannot be guaranteed
as they depend or the third party. Thus, these factors are interrelated and
analyzing them often requires skills and knowedge from multiple persons.
multiple factors need to be considered in decision making methods such as the
analytic hierarchy process (AHP) have been widely applied to tackle service
selection in many areas, the feasibility studies of using them in Freight Forwarder
selection seems to have significant research gap to be filled. This analytical hierarchy
process report aims to develop a Freight forwarder selection method selection
model based on Analytical Hierarchy Process, in which major selection criteria
are identified through surveying as well as use the developed modeling in a real
FF selection case of Godrej and Boyce Mfg. Ltd. In this study, the criteria
include price, reputation, location, experience, technical expertise and
relationship. Data was collected through a combination of relevant literature
and interviews with some domain experts/professionals from the company. The
research findings indicate that experience and price are the most important
criteria for company when considering the use of the third-party services.
Also, the developed model as a transparent decision-making tool can effectively
facilitate selection of the Freight Forwarder as well as their benchmark with
respect to each criterion identified. The model and tool are demonstrated in a
real Freight Forwarder selection case of Godrej and Boyce Mfg. Ltd.
Furthermore, this study also shows the advantages and disadvantages of the
selected Freight Forwarder compared to the other competitors with respect to
different criteria, which provides Freight Forwarders with clear benchmarks to
improve their services to meet their customers’ need.