3PLSP scale for co‐operative dairies in Indian context

The purpose of this paper is to develop a scale for measuring benefits of third party logistics service providers for co‐operative dairies in an Indian context. The objective is to measure benefits of third party logistics service providers for co‐operative dairies.

A standard scale development research procedure recommended by experts was followed. First, the literature review of studies to measure benefits of third party logistics was undertaken. Later, Delphi method was used. Interviews were conducted of experts and customers for understanding and generating items for measuring benefits of third party logistics service providers for co‐operative dairies. A survey was then undertaken first for development of the scale and later for validation purpose.

A reliable and valid scale is developed to measure the five dimensions of benefits of using 3PLSPs for co‐operative dairies: responsiveness, accuracy, customization of service, inventory handling and order processing and information sharing.

This scale is developed to outsource logistics functions at operational levels in the context of co‐operative dairies in India. So, this scale can be tested for co‐operative dairies of countries other than India. The scale can also be tested where outsourcing of logistics activities is done at operational level, other than co‐operative dairies.

The proposed scale can be used as a diagnostic tool to identify important benefits to consider in outsourcing operational function of logistics management to 3PLSPs in co‐operative dairies.

Most relevant studies about benefits of third party logistics service providers do not have stable factor structure, especially for co‐operative dairies. The new scale fills the gap of the absence of a validated scale to measure benefits of 3PLSPs for co‐operative dairies at operational level.