For many logistics directors the question that arises throughout your career is do you keep your logistics program in-house or do you outsource to a third party provider?
If your company already has the equipment, facilities, and talent at your disposal than keeping most of your company’s logistics in-house is probably the most effective route to go. But if you are a company that doesn’t have a strong competency in logistics, or your company really doesn’t make logistics and supply chain management a priority and it is starting to show, then it may be time to investigate whether or not it makes sense to use a 3PL.
Logistics is the process of moving goods from a manufacturer to a customer in the most timely and cost-efficient manner possible.
Are you regularly getting your products to customers on time?
Are orders being properly picked for shipment on a consistent basis?
Do you have the processes in place to support supply chain efficiency?
Do you have access to inventory management technologies that enable you to have visibility of your supply chain?
Are you shipping product in high enough volumes to have strong purchasing power in the market?
These are some of the questions you have to ask yourself before coming to a decision.
Tags: Third Party Logistics, 3PL, Logistics, Warehousing