A STUDY ON THE EFFICIENCY OF 3PL LOGISTICS OPERATIONS

Third party logistics (3PL) has become an important source of competitive advantage, especially in supply chains. Based on the literature review, this study develops a research model from organizational theory to elaborate the cause and effect relationship between 3PL service quality, organizational effectiveness, and relationship management with service partners. After the measurement model is analyzed, the structural model is tested and confirmed. The testing and confirmation results show that the significant criteria that are related to 3PL organizational performance comprise three constructs: service quality (SQ), organizational effectiveness (OE), and relationship management (RM).The results indicate that the causal relationships between service quality, organizational effectiveness, and relationship management are important dimensions of 3PL organizational performance. The results also confirm the multidimensional measurement capacity of 3PL organizational success and support the application of the concept to organizational performance