Impact of Warehouse Management Factors on Performance Improvement of 3rd Party Logistics Industry

The alarming attention towards the warehousing performance improvement based on different aspects of warehouse management factors has proven to be more critical, especially for the growth of the third-party logistics (3PL) industry. Warehouse performance alleviates discrepancies between warehousing management criteria and performance indicators to assure that the smooth flow of the supply chain aggregates its demanding areas to a satisfactory level. For the last few years, urgent requirements for enhancing improvement have been prominent, especially in the service sector attached with the practical performance in the 3PL industry. Despite analysing the criterion and its effectiveness, identification of the direct relationship between warehouse management factors and how it has impacted the warehousing performance based on the different aspects of indicators in the Sri Lankan 3PL industry, is not yet taken into consideration. This study uses a systematic literature review and expert opinions to identify the key warehousing factors of 3PL industry in Sri Lanka. In total, 12 key success factors were obtained, and those factors were grouped into three categories: operational, economical and environmental factors. A conceptual model is developed to identify the relationship between the warehousing critical success factors and warehousing performance. The study reveals the lack of attention paid to warehouse performance criteria along with warehouse management factors. The findings of this study could inspire the decision-makers who wish to improve the 3PL industry performance while improving warehouse performance in the 3PL industry in Sri Lanka.