Therefore, aplying 3PL can help a company to achieve competitive advantage within a highly competitive market and also help in influencing savings on logistics costs according to the research by Kannan, Hq and Kumar. The advantage that 3PL has is that it helps in outsourcing business functions that were initially conducted within an organization that used to increase operation cost and delayed delivery to the customer because the company is involved in performing other tasks. Esentially, wen a company concentrates on their core competencies they are able to tide of strong competition because the stress of how the finished product will get to the customer in time is no longer theirs but that of the 3PL (Schniederjans M, Shniederjans A & Schniederjans D 2007, pOver the years, bsinesses have shifted from the profit-centered approach of business to the customer oriented approach in order to help their businesses to survive in a highly competitive global market.
Te customer-oriented approach is designed to have the needs of the customers to be the priority for a business, wich in turn satisfaction (Hewing 2014, p Authors that seek to bring out the relationship between the reduction of logistics cost and customer satisfaction and loyalty are Liu and Fang.
Te two authors assert that as much as a company seeks to deliver their products at the lowest possible cost through 3PL service providers, i is also important for them not to disregard the aspect of quality. Te implication of this is that they should not spare any cost whatsoever when manufacturing the products so that they meet the quality wich a sure way of achieving customer satisfaction and also loyalty.
Hwever, Lu and Fang (2009, p 24) also intimate that the 3PL service providers should also uphold safety standards when transporting the goods to the customer because if any harm comes to them then the customers are highly likely not to be satisfied by the product. Tis can be a loss that the manufacturer did not anticipate for making the 3PL and the producer to have responsibility when it comes to product quality that has an influence achieving customer Tan, Elinger and Chen (2010) seem to be in argument with this fact as they suggest that 3PL service providers together with manufacturers should be able to give customers value for what they are willing to spend, wich can influence customer satisfaction.
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