Effect of outsourcing logistics to third party providers on performances ; study of Sri Lankan apparel sector in Katunayake Zone

Abstract

This study examines the impact of outsourcing logistics to third-party providers on the performance of the Sri Lankan apparel sector in the Katunayake Zone. The research is based on 80 respondents who were employees of companies in the apparel sector that have outsourced their logistics to third-party providers. The study found that outsourcing logistics has a positive effect on the performance of companies in the apparel sector, as it leads to improved delivery times, cost savings, and better customer service. The research also identified some challenges associated with outsourcing logistics, such as communication issues, lack of control over the logistics process, and dependency on third- party providers. Overall, the study suggests that outsourcing logistics can be a viable strategy for companies in the apparel sector, but careful consideration should be given to the selection and management of third-party providers to ensure successful outcomes