One of today's trends to solve this problem is outsourcing logistics or using third-party logistics (3PL) to manage complex distribution requirements. Organizations have developed strategic alliances with 3PL companies all over the world to manage their logistics operations network.

  • Improved customer service
  • Reduced staffing and vendor costs
  • Outside expertise
  • Ability to concentrate on core business
  • Higher productivity
  • Lower administrative costs
  • An opportunity to convert fixed costs to variable costs
  • Measurable service standards