The Concept and Nature of Outsourcing Logistics Free Essay Example, 2500 words

To many firms, logistics outsourcing is a means of reorganizing their distribution networks thus increasing their competitive advantages. In the last several years, there has been a dramatic growth of logistics outsourcing by use of a third party logistics (3PL) provider for all or part of an organization s logistics operations (Regan Wang, 1). Sometimes, an organization decides on outsourcing when it is hard to handle all aspects of the business. In addition, another reason for outsourcing logistics is that there are a few processes limited for a short time and are therefore not practical to hire experts for a short period (Mehta, 1). However, in most cases, it is difficult handling the high demand of every department within an organization especially the call center services and sales services. Additionally, many of the cases are temporary and it is not ideal for the company to appoint an in-house department to manage this work. It is the duty of the outsourced company to accompl ish the necessary actions once they have received the duties (Inso. A decade ago, the third party logistics was just surfacing in many parts of the world. We will write a custom essay sample on The Concept and Nature of Outsourcing Logistics or any topic specifically for you Only $17.96 $11.86/page