THIRD PARTY LOGISTICS CAPACITY AND CUSTOMER SATISFACTION;
Chaka Jeje*1

, Dr. Rita Makumbi2 and Oroma Annabella Asedri3

*Corresponding Author, Faculty of Business Administration& Management, Ndejje
University.
Third party logistics is a component of business and commerce world over. Given that businesses
are in an interminable race to fix their resource constraints, every added cost points to inefficiency.
As such, companies have diversified their portfolios to concentrate on core activities and engaged
3pls to handle their whole supply chains. The study used a cross sectional survey and descriptive
research design, with a target study population of 142 participants (Comprising of; staff and

customers) from which a sample of 103 respondents was randomly selected. The structured self-
administered questionnaires were used to collect data. Results revealed that all the three aspects of

the independent variable had associative positive significant relationships: freight management
and customer satisfaction (r=0.391*; p=0.010; Adjusted R-square= 0.209); warehousing and
customer satisfaction (r=0.453**; p=0.007; Adjusted R-square=307) and customs clearance and
customer satisfaction (r=0.176*; p=0.020; Adjusted R-square=0.131. In conclusion, the third party
logistics service provides need to be abreast with modern and global trends of logistics
management; adopt new mechanisms for successful customer satisfaction such as furnishing with
appropriate information about customs clearance to its customers, possessing the right
warehousing techniques and tools to ease handling of customers’ products among others.