IMPACT OF THIRD PARTY LOGISTICSON CUSTOMER SATISFACTION OF FRUIT AND VEGETABLE SUPPLY CHAIN INDUSTRY

Abstract

Purpose: The purpose of this thesis was to explore the impact of third party logistics on supply chain management of fruit and vegetable industry. The rationale of this thesis is to assess the customer satisfaction in upstream and downstream of supply chain by involving third party logistic. Methodology: The deductive approach has been used to conduct this research. It is based on explanatory research that enables to understand cause and effect relationship. Questionnaire has been used as research instrument. The study involved a sample size of 52 respondents. Statistical tools including Correlation, and Regression analysis, Variance inflation factor and Collinearity diagnostics were applied. Findings: The findings of this study indicate that there is a significant impact of third party logistics on the customer satisfaction in fruit and vegetable supply chain. This research suggests that cost reduction and on time delivery has significant impact on customer satisfaction. The research suggests that information technology is the insignificant factor that has not created great impact on customer satisfaction in the fruit and vegetable supply chain. Practical implications: The research is considered quite useful for fruit and vegetable industry which is using 3PL. The study is also useful for other related industries which are using third party logistics. This research is likely to help in finding out multifarious benefits of using 3PL in the fruit and vegetable industry. Academia can also benefit from this study.