Exploring the Effectiveness of Performance-based Logistics: A Quantitative Examination

Purpose: The basic aim of writing this paper is to establish a need of a good environment for business through Performance-based logistics effectiveness. PBL strategies are helpful for reducing the life cycle cost of any business for Government and for profit organization with the help of contractual mechanisms. The effectiveness of logistics is very helpful for any business. PBL is helpful for incentives investment in reliability. Through PBL strategies, suppliers make more profit when they invest in logistics improvements and system redesigned which decreasing the total cost of ownership. “The purpose of this study is to test the relationships between PBL enablers and PBL effectiveness”. Methodology: A multiple regression model is used for achieving the good results of PBL effectiveness. In this study, we use two mixed methods of qualitative and quantitative analysis. Our sample size is based on 24 different organization logistics managers and 4 interviews are conducted to test the validity of PBL effectiveness. Findings: Our study based on effectiveness of performance based logistics, key antecedence include (PBL leadership, Investment Climate, Relational Exchange and Business Sector). According to our research, Relational Exchange has positively effects on PBL effectiveness. In our country, if organization has a strong relationship with inbound or outbound logistics then, these organizations succeed in their desirable goals. Post production has a great risk for suppliers and on other hands it also has many benefits for suppliers. For the purpose of getting customer loyalty and reliability for suppliers is very important, so the suppliers should be more efficient and more effective