Investigating the Influence of Third-Party Logistics Providers on the Physical Distribution of Manufactured Products. A Study of MDS Logistics.

Abstract

The impact of third-party logistics providers will emphasise the pivotal distribution agents for manufacturing output. However, despite the importance of this role, it has hardly been investigated on its contributions. This study examines the influence of third-party logistics providers (3PL) on the physical distribution of manufactured products. The study uses a 3PL company named MDS logistics. One hundred returned questionnaires from the staff of Guinness Nigeria, using purposive sampling and a well-structured questionnaire. The hypothesis tested reveals a significant influence of third-party logistics providers on the physical distribution of manufactured products. The findings supported this hypothesis using the chi-square statistical tool (with a considerable level of 0.000). The study recommends the need for manufacturing firms to implement a unique distribution strategy (adoption of a third-party logistics provider) to achieve a significant competitive advantage and attain a desirable level of performance. Secondly, manufacturing firms should always embrace supply chain management to lower costs, grow the market and sales, and build strong relations with third-party logistics clients.