The　aim　of　the　research　described　in　this　paper　is　to　evaluate　the　relationship　between　the　service　capabilities　and　performance　of　UK　and　Taiwanese　third-party　logistics　(3PL)　providers.　A　study　is　presented　based　on　a　recent　survey.　The　results　identify　the　most　important　services　offered　by　3PLs　and　the　most　important　aspects　of　3PL　operational　performance.　The　results　also　suggest　that　excellence　in　operations　is　more　important　than　wide-ranging　service　provision.　Furthermore,　the　research　suggests　that　the　range　of　service　provision　offered　by　3PLs　does　not　directly　influence　the　3PLs＇　financial　performance.　However,　3PL　providers　with　service　capabilities　that　correspond　to　the　key　priorities　of　customers　will　gain　superior　financial　performance　through　a　better　operational　performance.　Similarities　and　differences　between　logistics　practices　in　the　UK　and　Taiwan　are　highlighted.　©　2010　Elsevier　Ltd.