Before I answer you, you should ask yourself three important questions:1 - Why outsource?2 - What logistics functions should be outsourced?3 - How to manage satisfaction within a3PL partnership? Why outsource?1.
Cost or revenue related (Cost reduction)2.
Service related ( Provides more “specialist services" - Improve service levels)3.
Operational flexibility related ( Provides more flexible system)4.
Business focus related ( Outsourcing non-core business)5.
Asset utilization or efficiency related6.
Change management related (Re-design or re-engineering the supply chain) - Overall improvement of distribution)7.3PL expertise related8.
Problem related What logistics functions should be outsourced? - All five studies found that certain aspects of transport are outsourced to a large degree.
- There are considerable differences in the level that third parties are used on warehousing.
- Information systems have a low priority in outsourcing.
This is in sharp contrast with the fact that many3PL wish to provide IT related services and have made large-scale investments in information technology.
- Almost any logistics activity can be outsourced.
For any logistics activity that researchers have included in their surveys,there has always been at least one company outsourcing that function.
Areas to be outsourced : - Transport and shipment.
- Warehousing and inventory.
- Information systems.
- Other (related to value added services) How to manage satisfaction within a3PL partnership? - Users of third party logistics services are usually satisfied with their3PLs.
However, most studies do not address the details of their satisfaction.
and discuss satisfaction with specific aspects of the3PL relationship.
- Exchange of information between the logistics service provider and user, clarity of contracts and the monitoring and measuring of3PL performance are common themes in most studies analysing the success factors in3PL partnerships.
Ideally, the set of performance measures should cover a full range of angles: cost, service, productivity, asset management, and customer and employee satisfaction.
Most studies stress the importance of performance measurement, yet it remains often unspecified which KPIs are or should be used.
- The main reasons for3PL relationships to fail relate to cost and poor communication.
However, it must be said that previous research has primarily focused on the success factors rather than the reasons for failure of3PL partnerships.