Abstract
The third party logistics (3PL) industry is growing significantly all over the world. Globalization of almost all economies of world has resulted in an increase in the emphasis on core competency about movement of goods from one place to another. However, 3PL industry is in its infancy in India. It is led by few domestic and multinational firms. Previous studies have established widespread adoption of 3PL by corporate enterprises in the USA and European countries but very limited research studies have been carried out in India. This paper is an attempt to explore the perspective of 3PL in India. The focus of this research is on assessing importance of logistical services; reasons behind outsourcing logistical services; extent of outsourcing logistics services by corporate enterprises; and slow adoption of 3PL. The findings of this research reveal bright future of 3PL industry in India. Corporate enterprises have a positive attitude towards it but are using 3PL for the fulfillment of routine functions not for strategic objectives as depicted by trends in developed countries for core competency or superior market responsiveness unlike trends in developed countries. However, 3PL firms need to market their value addition capabilities for strategic advantages for rapid growth and development.
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