Developing a framework for third party logistics in supply Chain networks of pakistan

Abstract

Purpose: The purpose of this research is to determine the impact of Third Party Logistics on the Operational Performance of the food manufacturing firms in Pakistan. The study also explores the benefits of Third Party Logistics and how it is gaining strategic importance in the manufacturing business. Methodology: The research follows a quantitative research methodology and it explores the impact the distributing a questionnaire among the respondents. The sample size for this research includes 200 respondents. The data analysis has been carried out through SPSS Regression test. The research variables includes: Information Sharing, Inventory Controls, Cost Savings, Sharing Responsibility, Strong Cash Flows &Timely Delivery. Findings: The findings from the Regression test show that, there is an impact of 58% (R-Square) on the operational performance of the firm in the presence of above independent variables. The results also show that, all the independent variables are accepted having their impact on the Operational Performance. Conclusion: In a nutshell, the adoption of 3PL will help the manufacturing firms in reducing their cost as well as improving their Operational Performance.