The study focuses primarily on the growing third party logistics (3PL) market in Australia. The logistics industry in Australia is developed and is growing at a medium rate. The structure of the logistics industry is changing due to the evolving needs and demands of the customers. Due to these changes, the demand for 3PL services is also increasing. The factors that fuel the growth of the 3PL market are increased outsourcing trends, consolidation of services and upcoming alliances, increasing economic activity and possible development of a truly multi modal transportation network. It is however important to understand the way each of the end user sectors operate to deliver cost effective, just in time, efficient logistics services.