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Purpose

The purpose of this paper is to evaluate the satisfaction level of customers using third party logistics (3PL) services in the Indian capital region and its surrounding areas. The American Customer Satisfaction Index (ACSI) model is used as a framework to identify the major drivers of satisfaction and areas requiring immediate attention for provision of better services.

Design/methodology/approach

Present study includes an exhaustive review of literature for the identification of enablers for this model. Through iterative and structured discussions, variables related to process, service information and user’s expectations are identified, which are subsequently grouped into four dimensions. A survey method is used to get the primary data for this research from 3PL service users’ organizations in the Delhi and adjoining capital region. ACSI is used to prioritize the most preferred driver of satisfaction.

Findings

Enablers related to process involving order processing, order picking, order fulfillment and final decision making stand out as the winners and also other critical areas have been identified.

Practical implications

There is a gap between the services obtained and services expected and information-related complications which lead to unsatisfied customers. The 3PL service providers need to focus on these areas for better business performance and healthy and long-lasting business relationships.

Originality/value

The paper is an attempt to implement a satisfaction model for the 3PL sector from user’s perspective.

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