Applying EBM Model and Grey Forecasting to Assess Efficiency of Third-Party Logistics Providers

Abstract EN

A third-party logistics (TLP) provider’s outsourcing mode is developed to support the economic activities for various industries.

The aim of this research is to assess the efficiency of 10 large TPL providers from past to future by integrating the GM (1,1) model in grey forecasting and an epsilon-based measure model (EBM) in data envelopment analysis (DEA).

The GM (1,1) model is utilized to formulate a forecast data in the future over period from 2018 to 2022.

Then, via EBM model, past–current–future data are used for computing efficiency of these providers.

The empirical values show that 115 cases comprise 79 efficiency cases and 36 inefficiency cases.

CHRW, ECHO, and UPS get strong efficiency and keep a stable efficiency score in whole term.

EXPD and KRRYF do not achieve efficiency during the period from 2013 to 2022.

Excluding CHRW, ECHO, and UPS, seven TPL providers demonstrate upward trend and downward trends in every term.

The increasing and decreasing variation index of 10 third-party logistics providers will help customers to select the best TPL providers.