TO ANALYZE THE IMPACT OF THIRD PARTY LOGISTICS ON SUPPLY CHAIN PERFORMANCE OF E-COMMERCE INDUSTRY

Abstract

Purpose: The research was carried out to examine the factors of 3PL in the E-commerce industry of Pakistan. Since E-Commerce giants like Daraz.pk has a larger customer base and market they need to go for smarter sources of 3P1 rather than making capital investment. 3PL its distribution, warehousing, and in SCM is defined as, outsource agreement to ensure fulfillment services. 3P1 is sued by companies who try to save cost, time and efforts with an specific aim to ensure better customer service and timely delivery. Methodology & Design: The quantitative methodology where data research follows collection is carried out through primary sources, i.e. questionnaire. The sample size for the study includes 200 respondents while, the data collected through questionnaire is analyzed with the help of SPSS software by using regression test to check the impact while, Cronbach Alpha test to measure the internal consistency ofthe variables scale. Findings: The findings from the test shows that, the scale for this research is valid and reliable however, the regression shows that, 60% of the total variation in the SCM performance is explained by the factors of 3PL (Cost savings, operational efficiency, timely delivery & professional expertise). The research therefore, provides clear evidence that, 3PL is beneficial for the firm because it helps the firm in targeting other aspects of business and controlling their operational matters through 3PL assuring business continuity and meeting the customer demands.