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Strategic Drivers for Outsourcing Third-Party Logistics (3PL) in Local Foodservice Establishments: Its Impact to the Financial and Operational Performance

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  • Donnavic A. Dumapias

    (Department of Hospitality and Tourism Management, Mindanao State University – Iligan Institute of Technology, Philippines)

Abstract

Third-party logistics (3PL) are essential to the operational framework of enterprises, allowing them to focus on their core competencies. This study explores the strategic drivers that influence local foodservice entrepreneurs in Iligan City to outsource 3PL services, particularly concerning their financial and operational performance. Utilizing a descriptive quantitative approach, the research employed Spearman’s rank correlation coeffiecient to assess the significance of relationships among various factors. Data were collected from 20 local foodservice establishments partnered with FoodPanda and GrabFood between 2021 and 2024 through an adapted research instrument. The correlation analysis revealed a strong positive relationship between outsourcing 3PL and financial performance, with operating profit margin identified as the most significant determinant. Regarding operational performance, convenience, flexibility, and quality service emerged as pivotal drivers in the outsourcing decisions of entrepreneurs. While reputation was a consideration, it did not significantly impact operational perfomance. This study underscore the strategic value of outsourcing 3PL to enhance profitability and operational efficiency within the foodservice sector. The findings highlight the strategic importance of 3PL in achieving operational excellence and fostering business growth, providing valuable insights for entrepreneurs in the foodservice industry to optimize their logistics operations for improved performance and long-term success.

Suggested Citation

  • Donnavic A. Dumapias, 2025. "Strategic Drivers for Outsourcing Third-Party Logistics (3PL) in Local Foodservice Establishments: Its Impact to the Financial and Operational Performance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 553-567, March.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-14:p:553-567
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    References listed on IDEAS

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