The purpose of this research is to investigate the third-party logistics service provider performance. It aims to assess third-party logistics service provider performance impact on the supply chain efficiency of outsourcing firm and analyze the impact the challenges faced has on performance indicators. The study employed a descriptive research design using quantitative and qualitative data. Data was collected from customers and employees. The questionnaire and interview were the main instruments of data collection. The descriptive statistics method was employed to analyze the data using spss Version 25.0 . The research concludes that Service quality, Organizational effectiveness, and relationship management as having a positive influence on supply chain efficiency with a high percentage of the participant agreeing that service quality is positively impacting outsourcing firm supply chain efficiency among the three performance indicators. Moreover, the difficulty of getting talent and providing information was the major challenge faced and showed these challenges affect service quality. Based on the finding of the research, reviewing organizational effectiveness and relationship management strategy for better impact on supply chain efficiency of the outsourcing firm, assessing challenges impacting organization effectiveness and relationship management, evolving the third-party logistics service practice to four-party logistics service were the major recommendations provided.