Criteria analysis for deciding the LTL and FTL modes of transport

Abstract

Choosing between Less Than Truckload (LTL) and Full Truckload (FTL) is based on a multicriteria decision because it takes into account aspects such as costs and operational efficiency in transportation, handling and stock of goods. The aim of this article is to provide a detailed analysis of the criteria that comprise the LTL and FTL transport decision using a multicriteria methodology that considers decision makers´ preferences. The SMARTS method was applied in a telecommunications company that outsources its logistics operation. Results show that the main criteria for choosing LTL shipment are related to the relationship with the customer and the efficiency in the delivery of the freight (reliability of the delivery time). On the other hand, choosing FTL transport requires a high weight given to the criteria regarding benefits and cost of transit inventory. The contribution of the research is to provide a structured and flexible analysis to choose the types of shipment (FTL and FLT) when taking into account the risk aversion of decision makers using a non-optimal approach, but with approximate solutions encompassing several qualitative and quantitative criteria in this choice.