Drivers for logistics outsourcing and factor analysis for selection of 3PL provider

Abstract

Outsourcing of logistics activities has become a common practise by many companies, which implies an efficient choice of the third party logistics (3PLs) providers. This research aims to determine the current situation of outsourcing logistics activities in India. Selection of an efficient and potential set of 3PLs providers is a crucial decision. This decision is influenced by several factors or criteria. In this paper, we identify the factors that are important to the choice of a 3PLs service provider and prioritise them by employing factor analysis.

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