Investigating the drivers in selecting third party logistics (3PL) Provider: A case study from Indonesian manufacturing industry

This article aims to identify the factors considered by Indonesian companies in selecting 3PL. Respondents of this research are managers of logistics or persons in charge of logistics activities. Structural Equation Modeling (SEM) is used to elaborate the relationship between factors affecting 3PL selection decision. The results indicate that Information Technology (IT) usage, service quality, trust and customer satisfaction are the factors affecting the companies to select a 3PL provider. Other results also show that there is a significant relationship between those factors.