Business Performance Measures for the Third-Party Logistics Industry in UAE

Abstract

Third party logistic market is booming everywhere in the world. Globalization of world economy, focusing on core competencies, logistic cost reduction, and delivery performance made companies focus on outsourcing logistics. Third party logistic market is an emerging trend in the United Arab Emirates. Due to the economic development, easy access to open business market, technological development, robotization of 3PL industry and globalization are the few determinants that the organizations wanted to invest their money in UAE. Third party logistic market is growing fast in Abu Dhabi in the same way as in Dubai, where the 3PL market is highly adopted with IT application and robotization in their 3PL operations. Data have been collected from the 3PL clients and the precise data were collected through questionnaire and field visit. Actually 102 calculated 3PL user companies took an interest in the survey. The collected information was analyzed by Friedman’s test. This study reveals clear understanding about the various business performance measures for the third-party logistic industry in Abu Dhabi, UAE. Results have demonstrated that all the business performance measures in the 3PL user organizations have the “P” value which is under 0.01, with the null hypothesis rejected at 1 percent level of significance.