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Identifying Profitable Clientele Using the Analytical Hierarchy Process

This field-study project is being conducted jointly with faculty from the National Institute of Industrial Engineering (NITIE), Mumbai and the fast moving consumer goods (FMCG) Industry. The value of this research lies in identifying critical decision-making factors that drive the business and its logistics functions. Increasing competition is forcing companies to reduce operating costs. Reduction of logistics costs, through outsourcing, has become one of the ways to achieve this objective. This study focuses

on an analytical hierarchy process (AHP)- based quantitative framework to help a logistics provider rank prospective partner OEM companies with the view of optimizing its business development approach in the FMCG sector. Key decision-making factors are identified using primary and secondary research. A total score is calculated for each OEM company, and this ranking is used to identify which OEMs a third-party logistics (3PL) provider should align with. 3PL providers can use this framework to prioritize their business development efforts and focus on the right clientele to achieve profitable and sustainable growth.