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he theoretical framework is analyzed with the different concepts of supply chain, 3PL and advanced information technology.2. THEORETICAL FRAMEWORK For logistics service providers the Information Technology is one of the productive tools that enhance petence while decreasing the cost. The proper use of Information Technology in supply chain integration can improve provision of services to supply chain partners that have ultimately effect on the customer satisfaction and business performance and it also to increase operational petitiveness, flexibility and productivity (Daugherty et al. 1995). So theory is extracted on the basis of research questions and to support the purpose of this paper.. Third Party Logistics Providers Third party logistics has many interpretations and definitions, according to Berglund et al. (1999), Activities consisting of at least execution of transportation and management, and warehousing (if warehousing is part of the process) on behalf of the shipper are carried out by 3PL’s. Lieb et al. (1993), define third party logistics as the external pany to carry out the logistics functions that have conventionally been executed within an organization. Third party logistics is being more and more mon in Europe and USA and now third party logistics is accepted business practice (Laarhoven et al., 2000). Out sourcing of the logistics servicesenables panies to control is resources, spread its risks and focus on issues that are very much crucial to its existence and future growth (Sink and Labgley, 1997). Typically following are the services provided by 3PL providers according to Regan and Song, (2000)。 First he discussed about Transportation / Distribution sector of 3PL that they are providing general trucking services (TL, LTL), inter model transportation services (rail, ocean, air freight), specialized services (bulk, tank, hazardous material, refrigerated goods etc.), time constrained services (JIT, over night, same day etc.), and shipment tracking and tracing. Also 3PL is looking towards the Warehousing / Distribution sector as Public / Contract / Regional warehouse, Operation Technology (bar coding, radio frequency, VMI etc.), Value added services (crossdocking, freight consolidation, pick amp。 pack etc.), Order processing and fulfillment. 3PL is also providing Custom Services like Custom Brokerage, Duty Drawback. Of course the IT Support which includes EDI capability, Logistics information system amp。 other software and Webbased solution. In Product Support Services 3PL is providing Reverse Logistics, Valueadded services (package, label, mark, test, assembly etc.). Last but not the least 3PL offers Logistics Management / Consulting including Fleet operation, Distribution network design, Carrier selection / negotiation / routing, Facility location analysis /selection / design and Inventory management.. Information Technology Information technology is defined by Bagchi and SkjoettLarsen (2002), as a wide range of increasingly convergent and linked technologies that process the information as well as the information that business generates and systems are ever more required to perform activities more gracefully (Sorensen and Buatsi 2002). Using information technology in an organization has changed form being simply a tool for handling transactions to a weapon that can influence an organization’s petitive position(Blanton et al., 1992).. Advanced Information Technology and Third Party Logistics The application of information technology is gradually spreading in most areas of the panies specially to the logistics process. Information Technology is a vital element for third party logistics performance because the integration of logistics provider systems with its clients is must. Information Technology links members of a supply chain, such as transportation firms, distributors, manufacturers, and retailers, as it automates some ponents of the logistics workload, such as order status inquires, shipment tracking, inventory management and order processing (Vaidyanathan, 2005). Transactions costs can be decreased and supply chain participants can also manage the increased plications if considerable InformationTechnology improvements are made (Lewis and Talalayevsky, 2000). Now logistics user firms are more and more relying on 3PL’s to utilize their advancedInformation Technologies. Therefore, Information Technology in 3PL firms plays vital role to synchronize plex supply chain activities across logistics users and their customers, and works as a bridge of connecting customers in supply chain and logistics users (Wang et al., 2005).Figure 1: Role of Information Technology in Information Flow Source: Vaidyanathan, 2005.Figure 1: Role of Information Technology in Information FlowSource: Vaidyanathan, 2005.. Customer Satisfaction Philip Kotler pointed out that the satisfaction means one person’s sense of disappointment or sense of joyfulness by paring his perceptive effect to the service or product with his expectation. In todays any business management strategy customer satisfaction is accepted as one of the most important element. In an economically challenging environment understanding customers and providing outstanding value and satisfaction, even to the point of above expectations, is essential because survival is increasingly difficult across a whole range ofbusinesses (Ryding, 2010). Why customer satisfaction should lead to better performance