An analysis of the impact of the use of third party logistics providers on logistics performance and customer satisfaction: the case of Ugandan firms

The study was aimed at analyzing the impact of the use of third party logistics providers on logistics performance and customer satisfaction, the case of Ugandan firms. Data was collected through surveys and interviews supplemented by literature review. This study was prompted from the lack of studies about third party logistics practices in Uganda.The study used an explanatory case study design where judgemental sampling technique was used to select 205 firms to respond to the study. Data analysis was done with the aid of SPSS software version 17 that enabled the researcher to run various chi-square tests and regression models that helped in determining the relationship between the variables. The study revealed that there is a significant positive relationship between third party logistics service offerings and logistics performance. It was also revealed that the use of technologies by third party logistics providers has a significant positive impact on logistics performance. The study also revealed that logistics performance has a significant positive impact on perceived customer satisfaction especially in terms of lead time performance. On the overall it was found out that the use of third party logistics providers has a significant impact on the logistics performance and customer satisfaction. The study recommended that Third Party Logistics Providers should widen on their service offerings and adopt new technologies as they deliver their services to their customers. Also firms that have not yet embraced third party logistics are encouraged to do so as logistics outsourcing contributes to a firm’s performance.