Role of Advanced IT Enabled Third Party Logistic Service Providers in Customer Satisfaction

Third Party Logistics (TPL or 3PL) is a business dynamic of growing significance all over the world. But it is at a growing stage in the world where some domestic and multinational companies are continuously trying to establish themselves in this sector. The prime area of diversity in organizational plan of action is the broader use of TPL service providers who are using advanced information technology (I.T) platforms and integration of supply chain to embellish customer satisfaction with their services. With the outsourcing the logistics operations, organizations can focus on their core competencies and other important areas of organization which cannot be outsourced with other alternatives. This paper is an attempt to provide TPL role in customer satisfaction and how its advancement in I.T helps to win the customer’s trust. The analysis of this paper is conducted by discussing different concepts of supply chain integration, advanced information technology, customer satisfaction, and third party logistics providers, and their aftermath on customer satisfaction with theoretical framework. The paper also reveals that most TPL users are satisfied with the current level of services provided by TPL service providers as it has led to a positive outcome on business. As a result, the usage of third party logistics services is likely to increase substantially in the future and points out opportunities for future research.

Methodology and approach used – This study is focused primarily on the advance information technology usage in the third party logistics service providers to enhance and strengthen the customer satisfaction level. The theoretical framework is analyzed with the different concepts of supply chain, TPL and advanced information technology in TPL. The proposed 3PL research classification framework is based on a comprehensive literature review which concentrates on peer reviewed journal papers published within the period 1990-2010. A series of online surveys are also made which includes importance of TPL in business, level of service provided by TPL, main reasons for outsourcing, and overall satisfaction with their services etc.