THIRD PARTY LOGISTICS CAPACITY AND CUSTOMER SATISFACTION

 

THIRD PARTY LOGISTICS CAPACITY AND CUSTOMER SATISFACTION

 

Third party logistics is a component of business and commerce world over. Given that businesses are in an interminable race to fix their resource constraints, every added cost points to inefficiency. As such, companies have diversified their portfolios to concentrate on core activities and engaged 3pls to handle their whole supply chains. The study used a cross sectional survey and descriptive research design, with a target study population of 142 participants (Comprising of; staff and customers) from which a sample of 103 respondents was randomly selected.

The structured selfadministered questionnaires were used to collect data. Results revealed that all the three aspects of the independent variable had associative positive significant relationships: freight management and customer satisfaction (r=0.391*; p=0.010; Adjusted R-square= 0.209); warehousing and customer satisfaction (r=0.453**; p=0.007; Adjusted R-square=307) and customs clearance and customer satisfaction (r=0.176*; p=0.020; Adjusted R-square=0.131. In conclusion, the third party logistics service provides need to be abreast with modern and global trends of logistics management; adopt new mechanisms for successful customer satisfaction such as furnishing with appropriate information about customs clearance to its customers, possessing the right warehousing techniques and tools to ease handling of customers’ products among others.

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