Assessing Capability Maturity in Freight Forwarding and Third-Party Logistics Firms in Pakistan: A Mixed-Methods Approach Using the Capability Maturity Index

Abstract

This research assesses process maturity of freight forwarding and third-party logistics (3PL) companies in Pakistan using the Capability Maturity Model (CMM). While logistics play a pivotal role in ensuring efficiency of trade and effectiveness of the supply chain, there is lack of empirical evidence on process maturity in the logistics industry of emerging economies. The study adopted a mixed research approach, incorporating exploratory interviews with top managers and a quantitative structured questionnaire to 125 member firms of the Pakistan International Forwarders and Freight Agents Association (PIFFA). The qualitative analysis provided insights on the major drivers of immaturity: low adoption of modern digital systems, lack of process standardization and integration, failure to take data-driven decisions, and inadequate monitoring and feedback measures. This helped develop a quantitative measurement tool based on the Capability Maturity Index (CMI). As shown, the majority of firms are at Maturity Level 2 (Managed) and 3 (Defined) with little advancement toward higher levels of process optimization. Inferential testing reveals ownership structure and age of firm as significant predictors of maturity levels. Overall, the industry appears to have capability issues that reflect lack of technological integration and performance management processes. The results offer learnings for digital innovation and process standardization to improve logistics capabilities in Pakistan.

KEYWORDS: Capability maturity; freight forwarding; third-party logistics (3PL); logistics performance; digital transformation; supply chain capability; emerging economies; Pakistan