Relationship among Various Performance Measures and Outsourcing Services in the Third-Party Logistics Industry

Abstract

In the recent years third-party logistics market is an emerging trend all over the world and most of the companies want to reduce the logistic costs, increase the market share, and focus on competency through the use of 3PLs. Due to the diversity of economic development, industrial segments and core competency between the markets, the third-party logistic market is growing very fast in the United Arab Emirates. The empirical study was carried out based on 102 responses received from 200 respondents for the third-party logistics market in Abu Dhabi, UAE. These data are analyzed by the SPSS software. Accordingly, the Friedman’s test shows that the full truck load & transportation management and freight forwarding are the major outsourced activities from the 3PL firms having the “P” value which is lower than 0.01, with the null hypothesis being rejected at 1% level of significance. The detailed study explains the Pearson correlation coefficient, the regression analysis for the various business measures and factor analysis of the influencing the success factors in the 3PL market and necessity of outsourcing of 3PL services in Abu Dhabi, UAE.