dc.description.abstract | Logistics outsourcing is an emerging trend. Many companies are trying to outsource their logistics activities to outside parties to focus on their core competencies. Therefore, third party logistics industry is a strategic arm for today’s companies. The ultimate objective of this research is to find the factors affecting to the customer satisfaction of third party logistics outsourcing relationships in Sri Lanka. When considering the service organization context, customer satisfaction is one of the most significant aspect. Primary data gathering has been carried out from 50 companies embedded with 3PL, using stratified random sampling method. 203 valid questionnaires have been received.Descriptive analysis has been carried out to check the relationship between the customer satisfaction in third party logistics relationship and other explanatory variables. Due to the availability of colliniarity between explanatory variables, factor analysis has been carried out using data reduction techniques. To check the reliability of extracted factors, reliability analysis has been carried out. Based on the reliable factors hypothesis testing has been carried out for ordinal data using Kruskal Wallis test.According to the study, most commonly used 3PL services in Sri Lanka are warehouse operations, distribution and shipment consolidation. Among them, warehouse operation can be expressed as the most commonly used 3PL service. Significant effect of this result would be the most of the apparel firms were trying to outsource their logistics services to the 3PL providers. The study stated that the main purpose of the undertaking 3PL contract is for both domestic and international purposes. Majority of the logistics managers were authorized to take decisions on outsourcing logistics services. In Sri Lankan context, most preferred reasons for logistics services outsourcing are cost reduction, focus on core business, reduction in capital investment. Among 3PL customers, 25% of them are strongly satisfied about their 3PL providers. Approximately 41% of are somewhat satisfied about 3PL providers. Customer satisfaction in third party logistics relationship in Sri Lanka can be mainly categorized into four factors; “Tangible, image and trust”, “Empathy and relationship”, “Reliability and responsiveness”, and “Assurance”. | en_US |