EXPLORATION OF FACTORS HINDERING THE GROWTH OF 3PL MARKET IN SRI LANKA

Abstract

AttachedWith the globalization o f businesses and the consequent competitive pressures, all the companies are trying to deliver customized products all over the world quickly and on time. This has placed a number o f demands on the logistics systems. While today world logistic industry is practicing up to 7PL, within a short span o f time, Sri Lanka is still grappling with 3PL activities. Therefore, the intention o f this research is to identify the challengers, barriers / factors hindering the growth o f 3PL market in Sri Lanka to facilitate the growth o f the industry to meet the world competition. According to the findings, customers are quite happy about their 3PL providers, but they are not highly satisfied as well as any high trust to the 3PL providers. Costs, lack o f control, lack o f coordination, lack o f corporation are the main issues respectively that affect the growth o f 3PL market in Sri Lanka. Inadequate capabilities are also a one o f the problems. Lack o f control and lack o f coordination are the significant factors that diminish the satisfaction o f customers and lack o f control is the only significant factor that diminishes the trust o f customers. Minimizing lead time between deliveries, adoption o f new technology, handling no. o f order channels multiplied by the number o f delivery options and handling overstocks due to online sales, and adoption o f new technology are considered as the future challengers in 3PL market in Sri Lanka.