Impact of Third Party Logistic (3PL) Services on the User Satisfaction Level

Abstract

The main purpose of this study was to evaluate the impact of 3PL services on the user satisfaction level in a selected Apparel Manufacturing Company in Sri Lanka. Design/methodology/approach- The study has applied a quantitative survey design directed by five hypotheses. The study is based on logistic employees in a selected Apparel Manufacturing Company in Sri Lanka and it presents the results of factor analytics and path coefficient. Findings - Evidence to support construct validity and reliability of all survey-based scales measuring the key variables that have been found. Transportation facility has been impacted significantly on user satisfaction level measured at 0.098. Warehouse, information system, inventory management, value-added activities have not been impacted significantly with user satisfaction levels measured at 0.2, 0.599, 0.508, and 0.198 respectively. Practical implications - There is a gap between the services obtained and services expected which leads to unsatisfied service users as well as creating a negative perception in the minds of 3PL service users towards their 3PL providers’ logistics services. The 3PL service providers have to concern on these areas for better business performance and long-term business relationships. Originality/value - Research shows high variability in the models used and the findings of studies on the impact of 3PL services on the user satisfaction level in the Apparel manufacturing company. This is the first study done regarding the impact of 3PL services on the user satisfaction level by using the entire population in a selected Apparel Manufacturing Company in Sri Lanka.