Challenges of outsourcing logistics to third-party providers

摘要

The focus of this study is on the challenges that shippers faced using Third-Party Logistics (3PL) providers. The study is based on a mail survey of 126 shippers and personal interviews with eight shipper executives and four 3PL provider executives. The study first identifies the major challenges including, finding a 3PL with the capabilities meeting the shipper's specific logistics requirements, the incompatibility of information systems between shipper and 3PL, the failure of 3PL to meet a shipper's future growth needs, and issues related to security. Second, it offers some recommendations for shippers to consider in overcoming any challenges encountered.