Should the Warehousing Function Be Outsourced to 3rd Party Logistics

Should the warehousing function be outsourced to 3rd party logistics? Justify your decision.

Contents

Introduction 3

1. Industry Trends

1.1 Global Business Communication 4

1.2 Just In Time 4

1.3 Technology Innovation 4

2. 3PL Concept. Why the Need for Outsourcing

2.1 Focus on Core Competency 5 2.2 Proven Track Record? 5

3. Solutions Offered

3.1 Warehousing 5

3.2 Inventory Control 6

3.3 Transportation 6

3.4 Customer Service 6

3.5 Technology Flexibility 7

3.6 Information Systems 7

3.7 Credit & Control 8

4. Competitive Advantage in 3PL

4.1 For Customer 9

4.2 For Business 9

Conclusion 10

Introduction

Organizations have been downsized, right-sized, up-fitted, consolidated, and reengineered in an effort to better market positions in recent years. What more can a company do to improve itself? An organization can improve itself from the inside out by choosing better resources and using them more efficiently. Once an organization is cutting edge a market leader and profiled in every major publication what’s next?

3PL provided the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, the most basic functions of logistics. Third party logistics provider has grown steadily and continues to grow. Many large organizations have either partially or fully outsourced their logistics operation; however, smaller organization has been slow to follow. Today’s logistics industry is undergoing a major transformation. Delivery of supply chain service is moving from the traditional mode to asset-based Third Party Logistics (3PL) provider to an arena with minimal boundaries. The ease and accessibility of the collaborative economy has created new...