Logistics outsourcing has always been viewed by companies as a cost-cutting measure, however it is increasingly being considered as a strategic planning and business outcomes tool. Cost savings remain a key benefit, but the additional business controls generated by logistics outsourcing are driving the trend towards third-party providers.  It is no wonder why most Fortune 500 companies outsource all or a portion of their logistics functions.

Some of the many benefits of using a 3PL include:

• Reduction of overall supply chain cost
• Ability to focus on core competency
• Risk sharing
• Increased supply chain visibility
• Improved technology and systems expertise
• Better service to customers
• Improved cash flow
• Increased flexibility
• Minimization of capital expenditures
• Reduction of inventory costs
• Economic Order Quantity (EOQ) advantages
• Local knowledge in new markets