Assessing performance factors for a 3PL in a value chain

Business continuity of the logistics companies in the twenty first century highly depends on the value chain performance. As the variety of services outsourced to third party logistics (3PL) companies increase, success strategies for these companies are to be revised. This study explores and illustrates an analytical framework to assess the performance factors for 3PL companies through a managerial view. The factors integrating the strategical and operational targets are evaluated within a framework based on four levels; performance targets, planning activities, logistics operations, and performance attributes of logistics operations. The analytic network process is used to determine the most effective performance attributes. The framework is applied and studied in two major logistics companies active in the South East Europe. The proposed framework will contribute to the logistics sector by demonstrating the paradigm shift in performance measurement.