Selection of Logistics Service Provider for e-Commerce Using AHP and TOPSIS: A Case Study of SMEs in Thailand

e-Commerce plays an important role in the modern business model. A key success factor of e-Commerce is product delivery, which is done by third-party logistics service providers (LSPs). Each provider has different business objectives and behavior. Therefore, the selection of LSP is a very important part that helps e-Commerce provide efficient customer service. This work proposes the framework of LSP selection for e-Commerce by applying an Analytic Hierarchy Process (AHP). Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) is also utilized for the last process of AHP analysis for comparison with the conventional AHP. AHP analysis of the survey data shows that the major criteria of selection of LSPs are location, cost, and delivery. Comparing results of AHP and TOPSIS methods shows that the result from TOPSIS is very similar and consistent in value with the results from AHP.