Factors Impacting on the Selection of Third Party Logistics Provider

Abstract

With 200 firms interviewed, who use logistics services, interesting findings show that firm with different sizes have different demands toward logistics services. There are key factors impact on firm's 3PL selection, e.g. cost of service, reputation, operation performance, and long-term relationship, in which they are mostly depended on cost of service. This means that they agree with the best choice depended on cost of service of 3PL providers. Reputation is concerned as the second ranking, operation performance of 3PL provider as the third ranking and long-term relationship as the fourth ranking. Unlucky, there is no evidence to confirm financial performance of 3PL providers is considered by firm toward selection. This case is not surprised, because financial performance of the provider is internal information, it isn't easy to let its customer know that.