Multi-Criteria Decision Analysis on the Preference of Courier Service Providers with Analytic Hierarchy Process Model

Abstract

The rising interest in E-commerce has increased the reliance on courier service providers in Malaysia. However, the logistical performances of the courier service providers in Malaysia still require improvement especially in the enhancement of information system adoption as the providers are suffering from bottlenecks in some hubs and centres which affect the satisfaction of clients and the reputation of the online retailers. Online retailers place high concern in the performances of the courier service providers as their services affect the sales and revenues of the online retailers. Therefore, the goal of this study is to propose a framework to determine and rank the factors that affect the selection of courier service providers among online retailers in Malaysia with Analytic Hierarchy Process (AHP) model. This study found that real time notification, cost and timeliness are the three most important factors of consideration while GDEX is the highly preferred courier service provider among the online retailers. This study can serve as a guide to the courier service providers to improve based on the top factors that influence the selection of their services.