Title: Exploring the Perceived Benefits and Challenges of Small and Medium-Sized Enterprises in the Adoption of Third-Party Logistics (3PL)
Authors: Manalo, Denmart M. , Soriano, Divine C. , Mozo, Angelica Mae T. , Macasaquit, Carl Trisha Marie I. , Vince S. Capil, CB , Ricardo S. Jimenez, ChBA, DBA, LPT, ,
Volume: 8
Issue: 7
Pages: 53-70
Publication Date: 2024/07/28
Abstract:
This study aims to explore the perceived benefits and challenges of small and medium-sized enterprises (SMEs) in the adoption of third-party logistics (3PL) services. The scope of the study is limited to SMEs and 3PL in Mabalacat City, Pampanga. A convenience sampling method was used to select the respondents. The data were collected through Likert scale with close-ended questions. The findings reveal that the key perceived benefits of 3PL adoption include cost reduction, improved efficiency, enhanced customer service, faster delivery, and access to advanced technologies. However, the study also identified several challenges faced by SMEs, such as communication issues, dependency concerns, data security concerns, service quality issues, and cost overruns. Also, the findings showed a relationship between the benefits and challenges of small and medium sized enterprises in the adoption of third-party logistics. The study highlights the importance of cost, reliability, technology, flexibility, and reputation in SMEs' selection of 3PL providers, showing that prioritizing these factors enhances the benefits like cost reduction and improved efficiency. Despite challenges, SMEs report satisfaction with 3PL services, underscoring the need for strategic decision-making in logistics operations.