Chiyasa, Linus Batisani2019-02-152019-02-152018https://hdl.handle.net/10539/26424MBA ThesisThird Party Logistics (3PL), is the implementation of all or part of logistics functions by a service provider on behalf of another party on contract basis. This sector has steadily grown in capacity and expertise as more business worldwide outsource their logistics functions to 3PL service providers (3PL’s). Businesses engage 3PL’s so that they can focus on their core business, to reduce costs or to avert risks, all as a strategy to gain a competitive edge in the market. However some businesses opt to execute all their logistics functions in-house, using their own resources and expertise. They assert that the control they have of their supply chain(s) makes them more efficient and respond quicker to the business requirements. This research looks at the status of 3PL in South Africa, investigating the drivers for its use in the retail sector in the country. It also considers those companies that run their logistics inhouse, to determine the reasons for choosing to implement their logistics functions in-house. The research was conducted through the collection of primary data from one-on-one interviews with logistics executives. The interviews were based on a pre-determined questions framework based on the propositions to be interrogated. The research found that most of the respondents used 3PL service providers for some or all of their logistics functions. The functions that are being outsourced to 3PL’s are largely transportation and warehousing. This is despite the service providers offering other functions under the logistics domain. From the results of the research, most of the transportation is executed through 3PL service providers while warehousing is mainly implemented in-house. Besides using 3PL or executing logistics inhouse, companies use hybrid combinations for both transportation and warehousing. Thus part of each function is outsourced to 3PL while the rest is done in-house. The businesses in South Africa are basing their decisions for outsourcing logistics on the same drivers as those observed in other markets globally. The main driver for using 3PL is related to cost savings and hence gaining a competitive edge in the market. The basis for implementing logistics in-house was also found to be reducing costs and being able to control the logistics function(s) to their advantage. This is in line with the international trends on the phenomenon.enBusiness logistics -- Contracting out -- South Africa. Retail trade -- South Africa.Thesis