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Reports an inductive, qualitative investigation into third party logistics contracts in New Zealand. The objective of the study was to uncover managerial insights into effective logistics outsourcing that are appropriate to the New Zealand context. A salient feature of the research is the methodology that involved going back‐and‐forth between data gathering (the principal source of data was flexible interviews) and analysis, which was conducted through formal coding techniques. Analysis reveals that the third party provider’s refraining from premature monetary commitments is an instrumental variable in the effectiveness of third party logistics contracts in New Zealand. Also uncovers how the uniqueness of the NZ context shapes third party logistics in NZ.

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