An analysis of third-party logistics performance and service provision

The aim of the research described in this paper is to evaluate the relationship between the service capabilities and performance of UK and Taiwanese third-party logistics (3PL) providers. A study is presented based on a recent survey. The results identify the most important services offered by 3PLs and the most important aspects of 3PL operational performance. The results also suggest that excellence in operations is more important than wide-ranging service provision. Furthermore, the research suggests that the range of service provision offered by 3PLs does not directly influence the 3PLs’ financial performance. However, 3PL providers with service capabilities that correspond to the key priorities of customers will gain superior financial performance through a better operational performance. Similarities and differences between logistics practices in the UK and Taiwan are highlighted.