​ why third party logistics arrangement are not always successful?​

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School: UIUC




Third Party Logistics
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Third party logistics are firms that are contracted to carry out the supply chain functions
of the client companies. The 3PL service providers are outsourced to focus on specific functions
of the firm as the supply chain management team of the client firm focuses on more important
and critical functions of the company (Marchet et al., 2017). This gives companies more time to
focus on their core competencies. Coca Cola is one of the multinational companies that have
mastered the value of third party logistics (Vouzas & Katsogianni, 2018). The company
outsources the warehousing of their finished goods to a firm called DB Schenker Logistics,
located in Poland (Thamsatitdej et al., 2016). The additional help may be in the transportation,
distribution, packaging, inventory management or even in ensuring that the inventory
management of the firm is effectively done and managed. Companies experience growth at some
point in their operations and managing them all becomes a challenge and this is when the
services of a third party logistics come in handy.
The Main Functions of 3PL
One of the major functions of 3PL companies is warehousing. Most of the third par...

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