Wasantha, PREMARATHNE Senior Lecturer Department of Management and Finance, General Sir John Kotelawala Defence University, Sri Lanka
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ISSUES AND TRENDS OF THIRD PARTY LOGISTICS (3PL) MARKET IN SRI LANKA Abstract Utilisation of state-of-the-art logistics management systems provides more effectiveness to logistics companies. Logistics outsourcing results in the reduction of excess stock, cost of production, leadtime, resource shortages, overhead costs, and increases production flexibility, quality and leads to better concentration on the core business. The main objective of this research was to evaluate the third party logistics market in Sri Lanka through the analysis of primary data gathered from leading logistics companies in Sri Lanka. This work debates the competitive advantages, trends and issues of the third party logistics (3PL) market in Sri Lanka. Research reveals that most of the 3PL users in Sri Lanka are satisfied with the services provided by 3PL service providers and the trend indicates that the usage of third party logistics services will increase to a large extent in the near future. The increase in competitiveness has resulted in 3PL providers becoming more integrated with their customers. However, 3PL service providers and customers are not satisfied with the available infrastructure facilities and regulatory bodies in the country. Contradictions among the views and knowledge of the suppliers and customers on some areas of the 3PL market in Sri Lanka are at a significant level. The research aims to contribute to the growth of the 3PL sector in Sri Lanka in the fields of strategic 3PL management and 3PL organizational performance. Keywords: Supply Chain Management, Outsourcing, Third Party Logistics
