Abstract: Shippers are concentrating on the core competency to
stay competitive and outsourcing the logistic activities to the third
party who is expert in this field. This third party logistics (3PL) is
drawing the due attention at government, industrial, academicians
and practitioner-s levels. If the logistics cost in India can be brought
down from the current level of 13% of GDP to 9% (level in the U.S.),
the savings would be around Rs 3 lakh crore approximately per
annum. But the problem with the shippers is to select the suitable
3PL provider. Various criteria for selection of 3PL have been listed
in the literature which are discussed in the present literature review.
Every shipper will select the criteria suitable to its own requirement
which have to be dynamically reviewed time to time so as to fit in the
ever changing environment.