Drivers of Outsourcing and Selection Criteria of 3rd Party Logistics Service Providers

Previously various studies were conducted concerning the outsourcing and selection of 3PL in different countries but this study aims to find out the reasons of outsourcing and selecting a 3PL from the different industries of Pakistan. The study aimed to collect the data from the manufacturers working in different industries in Pakistan. The researchers have used mean testing to rank the factors as per their importance and the data of 125 respondents were gathered for analysis. Study has found that reduction in the logistics costs is the most important reason for outsourcing 3PL and service quality is the most crucial factor for the selection of any 3PL service providers in Pakistan. The research aims finding the factors for the reasons of outsourcing and selection of a 3PL but it would be useful finding the impact of outsourcing the logistics activities on the organization’s performance through qualitative and quantitative approaches. The research provides a vital and practical direction to the Pakistani organizations regarding the decisions of outsourcing and selecting a 3PL service providers. The research will help finding the reasons of outsourcing and selection of any 3PL party. The research aims finding the reasons and selection of 3PL in the organizational perspective of Pakistan as there are very limited past conducted studies.