Abstract

Third party logistics (3PLs) play a vital role in e-commerce transactions as it makes consumer to consumer and
business to consumer transactions more convenient in the Philippines. Nevertheless, delivery issues and challenges
persist that lead to frustrations of consumers. For this reason, the study aims to conduct a factor analysis on the
last-mile delivery process of 3PL companies as partner couriers of e-commerce companies in the country’s
National Capital Region (NCR). Employing a self-administered survey questionnaire and structural equation
modeling (SEM), the research presses on identifying the relationships among various factors influencing the
number of delivery problems. The results of the study indicate that final step failure is the most critical factor in the
last-mile delivery process. However, fixed assets, delivery performance, quality service, market share, and long
term relationships significantly impact final step failure that leads to the increase of number of delivery problems as
well. The findings of the study are recommended to be used to reevaluate last-mile delivery processes to help
improve and maintain customer satisfaction.

Keywords
Third party logistics, E-commerce, Delivery Issues, Confirmatory Factor Analysis, Structural Equation Modeling