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Logistics Service Providers (Outsourcing considerations (What are our…
Logistics Service Providers
Outsourcing considerations
What are our current costs
What customer skills does the contractor possess
What are the contractor's special strengths
Will the contractor hire the most qualified partners
How 3PLs and 4PLs are related
Advantages/disadvantage of 3PLs and 4PLs
3PLs benefits
Improve business focus
More current logistics technology
Greater technological flexibility
More efficient warehousing for rapid replenishment
Improved service to customers
More workforce and resource flexibility
4PLs benefits
Improved business focus
High quality logistics operations (or reduced costs, or both)
Greater business flexibility
3PLs risk
Loss of control
Potential for inefficiency
4PLs risks
Loss of direct control
Potential for less effective or more costly operations