Global Logistics outsourcing trends:

Challenges in managing 3PL relationship

Author: Sangam VK
Article Type: Critical review of Surveys

Key Words: Logistics; Outsourcing, Global, 3PL, Survey, Supply Chain, Strategic Alliance,

Survey, Contract Logistics.

Sangam VK
Lecturer in Logistics and SCM
Massey University
Private Bag 102904,
North Shore Mail Centre,
Auckland, New Zealand.
Telephone: +64 9 4140800 ext. 41105
Facsimile : +64 9 4439640
e-mail: v.k.sangam@massey.ac.nz.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 1

1.00 Abstract

Today’s business success to a great extent depends on logistics and supply chain
performance. The role of Supply Chain has never been as critical as it is today.
Supply Chain speed and flexibility have become two key levers for competitive
differentiation and increased profitability.

Globalisation has opened many lucrative avenues to the business world and also
posed many challenges to be successful in the global trade. One of the biggest
challenges in the Global Trade is the ability to manage seamless forward and
backward flow of material and information. Faced with increasing global competition
in the last two decades, the popular reengineering strategy adopted by many
successful companies to address these challenges involves outsourcing logistics and
supply chain activities/processes to third-party logistics companies (3PL) and focus
on Core Competency. These alliances are also known as Logistics or Supply Chain
Outsourcing and Contract Logistics.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 2

2.00 Introduction

The main objective of outsourcing is to reach markets faster, leverage economies of

scale, to add flexibility to the supply chains, to increase global capabilities and to
focus on core competencies. In order to be competitive in the market place and to
improve return on investment to the share holders, organisations have identified the
non-core functions within the organisation and outsourced it to reduce costs and to
make supply chains more flexible and faster. The definition of non-core function is
changing from time to time in the hypercompetitive market. IBM, who pioneered the
PC technology is no longer considers manufacturing of desk-tops and some range of
servers as core activity and they have outsourced extensively world wide. IBM says
the reason for doing these manufacturing deals (outsourcing) with Sanmina-SCI and
Solectron is because it wants to "optimize its supply chain for e-business on
demand."1 Subsequently, IBM, a pioneer of the personal computer business, has sold
its PC hardware division to China's number one computer maker Lenovo (formerly
known as Legend). IBM, meanwhile, will be free to focus on its other more lucrative
businesses. The definition of Core Competency has changed once again as far as
IBM is concerned. In a recently conducted survey titled, “Supply Chain Directions”,
sixty percent of the respondents have identified outsourcing Supply Chain functions
as one of the strategy to over come inefficiencies in the system.2

Till 60’ mostly transportation activity was outsourced. In the recent past all Logistics
and supply chain functions are being outsourced world wide. Further, the activity of
managing a 3PL operator and other contractors is also outsourced. As the third party
logistics (3PL) industry has continued to evolve, it has clearly become more global in
nature. Many commercial establishments world wide have turned to logistics
outsourcing as a way to re-engineer their distribution networks in order to meet the
global market demands and also gain competitive edge.

In responding to the needs of the customers who are increasingly global in it sourcing,
manufacturing, sales, and distribution has encouraged large 3PL companies to expand
their global network in order to meet the requirements of their customers. Some of
these 3PL companies have expanded their operations in the emerging markets by
acquisitions and by initiating new start-up operations. Where as they have developed
strategic alliances with the local service providers in other parts of the world. The
task of designing and developing global network and delivering consistent service
levels all over the network is a challenging task taken up by 3PL companies.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 3

3.00 Objectives of this review:

Outsourcing has become a successful strategy of getting some of the routine logistics
and supply chain activities executed by a 3rd party all over the world in order to save
costs and to focus on core activities. This review will focus on North America,
Western Europe, Asia Pacific region, China, Australia and New Zealand markets.

According to a recent Warehousing Education and Research Council (WERC)

pamphlet reported that 55% of logistics outsourcing alliances are terminated after 3-5
years. In some cases it was noticed that the relationship ended even before completion
of the first year of operation. According to a survey, 43% of identified users of 3PLs
in North America cancelled at least one 3PL contract in 1998.3. Hence, this review
has been undertaken to critically look at various surveys in the areas of Logistics
Outsourcing and develop meaningful analysis and also address the issue of
Challenges in managing 3PL relationship.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 4

4.00 Discussion on Logistics Outsourcing Trends:

This section will provide answers to some of the critical questions in the area of
Logistics and Supply Chain Outsourcing. The focus is on the topics such as 3PL
Usage; Reasons for Outsourcing; Factors influencing the 3PL selection; Activities
Outsourced; Future of Logistics Outsourcing.

4.1 3PL Usage:

The discussion will focus on North America, Western Europe, Asia Pacific, China
Australia and New Zealand.

4.2 Focus: United States of America

“North American third-party logistics has been a growth business since its inception
in the late 1980s. The cumulative annual growth rate from 1996 through 2003 was
14%. Armstrong & Associates estimates 3PL revenues for North America to be $104
billion (US). International transportation management which includes freight
forwarding and cross border transportation management accounts for $39 billion.
Value added warehousing/distribution is the second largest category.”4 Where as the
average revenue generated in 2003 by 23 leading 3PL companies in North America
recorded a growth rate of around 9.00% compared to 2002 revenue. The revenue of
these 23 leading 3PL companies alone in 2003 amounted to US $17 billion.5

According to the Capgemini 2004 report6 North America 3PL usage is steady around
79%, where as there is a 5% growth in Logistics expenditure directed to outsourcing.
The below given Exhibit (1) shows the graphic presentation of 3PL usage in North
America from 1996 to 20046.

3PL Usage in North America (1996 to 2004)

80
79
78 78
75
73 73
70 71 71 71
68
65

60
1996 1997 1998 1999 2000 2001 2002 2003 2004

3PL Usage in %

Exhibit 1

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 5

4.2.1 Highlights:

1. Eighty percent respondents indicated that their logistics and supply chain
activities are outsourced and there was no growth recorded when compared
with last year outsourcing trend reported by the same survey7.

2. The perception of the users in North America about the 3PL companies is
undergoing a change. There is a clear indication that 3PL companies role is
beyond basic transportation and warehousing. 3PL companies are considered
as Supply Chain Integrators and Strategists. According to the Capgemini
report 20046, 81% of the respondents consider 3PL providers as “Total Service
Provider”, 26% feel that 3PL companies act as Supply Chain Integrators and
20% treat 3PL companies as Logistics Strategists (only 13% felt that the 3PL
companies act as strategists during the 2003)8.

3. There is a negative growth in future Logistics Expenditure directed to

outsourcing. The Capgemini 20038 report revealed that 56% of the logistics
expenditure will be outsourced and where as the 2004 report6 indicated 49%
only. Thus resulting in 14% negative growth. This could be due to increasing
imports and shift of manufacturing base from North America. According to
See Watson, Carlos, the US had a $120 billion trade deficit with China in
2003, and it is expected to be even higher in 20049. This could be one of the
main reasons for the 14% negative growth discussed above.

4. North American users outsource only around 13% of their value added
services to the 3PL companies. Where as in Europe and Asia 3PL companies
handling value added service is relatively high. 6

5. Interestingly US companies outsourcing Logistics Activities outside United

States and particularly in Asia is showing a growing trend. The NEU and
Accenture survey revealed that in 2003 US Companies outsourcing 3PL
activities in Asia was around 61% and where as the 2004 report indicated 58%
excluding China (63%) and India (21%). This is phenomenal growth in
Logistics outsourcing in Asia by US companies. This trend reveals two things
to us. One is that China and India have increased the use of US made products
and China and India have become important manufacturing options for
American Companies.7

6. The negative impact of Logistics outsourcing on employee morale around

40% according to the NEU and Accenture 2004 report. This reflects true
picture because according to the Encarta Encyclopedia Article by Steven
Greenhouse (The New York Times) revealed that North America has lost
nearly 3 million factory jobs since the year 2000. The total number of factory
jobs declined to 14.4 million in August 2004. Many economists estimate that
outsourcing and imports have caused one-fourth of this loss, while automation
and slack demand have caused the rest. Forrester estimates that the wages lost
from moving all these jobs offshore will total $136 billion by 2015.10

7. Forty two percent of users indicated that the value delivered by their providers
has “continued to increase over time”. Forty six percent said that it “stayed

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 6

 relatively constant over time” and only twelve percent indicated the value
delivered by their providers “decreased over time”.7 According to the
Capgemini 2004 report 42% of the non-users and 15% of the users believe that
outsourcing may not result in cost reduction. Fifty two percent of the users
group felt that the Logistics outsourcing costs go up once the relationship has
commenced and 47% felt that Cost reductions have not been realized.6

8. Use of Technology will grow tremendously in the coming years in order to

establish supply chain visibility in order to minimise inventory carrying and
reduce loss of sale. This factor was revealed in the survey conducted by “eye
for transport”2. Around ninety seven percent respondents indicated that they
have plans to deploy better technology. Dependence on the 3PL companies to
provide IT technology including RFID will grow. According to the
Capgemini report 2004, fifty three percent of the users have identified RFID
as their future requirements in Logistics outsourcing6. According to the
survey conducted by “eyefortransport”2 about forty seven percent respondents
are planning to implement RFID. The dependency on 3PL companies for IT
technology support also registered a growth of 19% over 2003.6

9. The rationale given for not to outsource logistics include factors such as non-
reduction of costs, loss of control, the importance of the logistics function, and
the service levels.6

10. Ninety percent of the survey respondents consider Logistics outsourcing is a

success. The nine year average stands at 87%.6

11. On the costing side, more and more organisations are inclined towards “gain
share”, this is a good sign and this could lead to supply chain partnership and
long term outsourcing.6

12. Fifty seven percent respondents in the “eyefortransport”2 survey have

identified outsourcing as a strategy to improve the supply chain performance.

13. Fifteen percent cost reduction was achieved in North America, Sixteen percent
Asset reduction was also noticed, average order cycle was reduced to 6.8 days
(44% improvement), seven percent inventory reduction was achieved, Cash to
cash cycle reduced to 19.8 days (11% improvement) and 58% service level
improvement was reported.6

4.3 Focus: Western Europe

According to Datamonitor’s European Logistics Market Maps 2004, total spend on

outsourced logistics in Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the
United Kingdom will reach €175.5 billion by 2008 to account for 45 per cent share of
total logistics spend.11

"There will be continued growth in the outsourcing of more complex logistics tasks
such as order handling, logistics management, and the provision of value-added
services," said Tom Mills, Datamonitor logistics analyst.11 One of the reasons for

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 7

increasing Logistics outsourcing is to achieve cost reduction in the areas of non-core
areas in order to fund escalating cost of product research and development.

Western Europe 3PL usage is around 76%, which amounts to 4% negative growth
over 2003 as shown in exhibit 2. However, the Logistics expenditure directed to
outsourcing is expected to grow at the rate of 11.5%.6 Thirty two percent of the 3PL
company’s revenue came from new accounts and the rest from the existing accounts.
This small piece of information reveals the growing trend of Logistics outsourcing in
Western Europe.12 Here is a graphic presentation of Logistics Outsourcing trend in
Western Europe during 2002, 2003 and 2004.6

3PL Usage in Western Europe

100
94
80 79 76
Usage %

60
40
20
0
2002 2003 2004
Year

3PL Usage in %

Exhibit 2

4.3.1 Highlights:

1. The 3PL industry is very optimistic about the business growth. It is projected
that the industry will grow next one year at the rate of 10% and in next 3 years
the industry is expected to grow at a rate of 11%. 12

2. The 3PL industry accepts that the year 2003 was challenging. However,
majority of the 3PL companies have expressed satisfaction about meeting the
revenue growth targets. Twenty three percent of the 3PL companies
participated in the survey reported that they have exceeded the growth targets,
fifty four have met their targeted growth rate where as twenty three percent
failed to meet the targeted growth rate. Where as in North America more than
one third of the participants failed meet the targeted revenue growth.12

3. The industry dynamics include, the universal demand for cost reduction
occupies the first place followed by large scale 3PL mergers, increased
pressure to globalisation, 3PL top management participation in decision-
making process and business alliances and broadening service offerings
occupies the last place.12

4. At present 94% of the business is generated by 3PL companies is coming from

EU members mostly Western European countries and 6% of the business is

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 8

 generated from other European Countries. However this trend is expected to
go through slight change by 2006.12

5. Around 58% consider 3PL companies as Supply Chain integrators and

Logistics strategists. Where as 68% feel that 3PL companies act as tactical
service providers. This is much better rating than what was indicated in
2003.6

6. There is a negative growth in future Logistics Expenditure directed to

outsourcing. The 20038 report revealed that 81% of the logistics expenditure
will be outsourced (during 2006 to 2008) and where as the 20046 report
indicated 68% only. Thus resulting in 16% negative growth. This needs to be
analyzed further. One possible cause could be shift in production base to
Eastern Europe in order to reduce the production costs.

7. Western Europe non-users feel that Logistics is their core competency and
they also consider Logistics management is very important. Further, they
strongly feel that they will loose control over operations and customer service
related issues. This year findings are no different from last year.6

8. Gain share and risk and reward share deal structure are popular in Western
Europe. 6

9. Western Europe users also expressed satisfaction (81% - 3 year average) over
outsourcing success consistently from 2002 to 2004.6

10. Automotive industry seems to be hot favourite for the 3PL companies in
Europe. This was followed by High Tech/Electronics, Manufacturing, retail,
consumer goods, Chemical, Health Care, Pharmaceuticals, and Wholesale.12

4.4 Focus: Asia Pacific

The logistics outsourcing industry is expected to be around US $ 80 billion in Asia

Pacific region by 2012 and the logistics outsourcing industry is growing by 3 to 10%
per annum in the region according to Singapore Economic Development and JP
Morgan.

The 3PL Companies operating in Asia Pacific region reported average revenue of US
$ 425 million for the year 2003. This constitutes 16% revenue growth over 2002.
The same report also indicates that the revenue growth would be around 15% every
year for next 3 years.13 Interestingly, Capgemini report also indicated 15.5% growth
in 2004 over 2003. Where as 21% percent growth is projected in Logistics
Expenditure directed to outsourcing for the period 2007 to 2009.6

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 9

4.4.1 3PL Usage within Asia Pacific:

Region/Country 3PL Usage % Source

Asia-Pacific
84% Capgemini 20046
Region
China 55% 2003 China Logistics user Survey14
Massey University Student’s
New Zealand 67%
research 2003.15
ALPHA Research Consortium –
Australia 60%
2004.16

Exhibit 3

4.4.2 Highlights:

1. China contributes 40% of revenue to the 3PL companies operating in Asia

Pacific region. Followed by Japan (18%); India (9%); Australia (18%) and
Others (15%). Where as the project revenues for 2006 will continue the same
pattern with small adjustments in percentage. China is expected to dominate
with thirty eight percent, followed by Japan (14%), India (12%); Australia
(14%) and others (22%).13

2. Capgemini 20037 report projected that 50% of the logistics expenditure will be
directed to outsourcing and that projection has come true. Where as the
projection for the year 2006 to 2008 was sixty percent and the latest report
(2004) indicates that seventy six percent of the logistics expenditure will be
directed to outsourcing during 2007-2009.6 That is phenomenal growth of
27%.

3. The China survey indicated the following outcomes of outsourcing. Logistics

Cost reduction scored a rating of 4.8 on a scale of 1 to 7 (15% reduction),
Fixed Asset reduction scored 5.2 rating (35% reduction), Order Cycle length
reduced by 6 days, overall inventory reduced by 33%, Cash to cash cycle
reduced by 8.5 days and service improvement scored maximum rating of 5.4
against 7.14

4. Further, it was revealed that domestic Chinese 3PL companies are preferred
over MNC 3PL companies. Insufficient global capabilities were indicated as
one of the biggest reason for not outsourcing Logistics activities. This was
followed by apprehension about poor customer service levels, loss of control
and Chinese users feel that Logistics Management is their core strength.
Further, the Chinese users also feel that it may not be economically viable to
outsource logistics functions.14

5. The industry dynamics identified by 3PL operators in AP in NEU and

Accenture (AP) 200413 report are as follows:

Continued growth of Chinese Economy

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 10

 Continued downward pressure on prices
Growing customer expectations on IT support
Customer interest in outsourcing broader array of logistics activities
Formation of business alliances to broaden service offerings.

6. Apprehension about loss of control and scepticism of cost reductions are the
main reasons for not outsourcing in Asia Pacific region. This was followed by
reasons such as “Logistics too important to outsource”, “Logistics is our Core
Competency”, “Service levels would not be realized”, and “Customer
complaints would increase”. 6

7. The Massey University study15 reveals that around 26% of the current non-
users have plans to outsource logistics activities in the coming years. The
same report reveals that majority of users feel that their 3PL operator is very
co-operative. Further, the users are very satisfied with main 3PL operator with
a rating of 4 on a scale of 1 to 5 (4 and 5 being Very satisfied).

8. ALPHA Survey – 200316 report indicates that IT remains the key enabler for
achieving benefits in outsourcing.

9. ALPHA Survey - 200316 reveals that Finance and Operations play a key role
in 3PL selection decision making process, followed by Sales, Customer
Service and Purchase.

10. It is quite common for the users to hire multiple 3PL companies for executing
logistics related activities. However, in order to achieve best possible co-
ordination in the areas of supply chain efficiency maximisation, it is always
suggested that one 3PL company should handle all activities. The Massey
study15 reveals that around forty four percent users deploy one 3PL company
and twenty eight percent deploy two 3PL companies and the rest (28%) deploy
3 or more 3PL companies.

11. Australian Logistics Industry is estimated around A $ 57 billions, out of which

A $ 23 billion outsourced to logistics companies A $ 3 Billion to non-transport
logistics operations.16

5.00 Reasons for outsourcing

Logistics outsourcing, once a mere option, has today become a necessity. The growth
of Information Technology, increasing competition, globalisation, rise of mass
customization, product proliferation, scrambled merchandizing, demanding customer
needs and pressure to reduce costs etc. has forced the organisations to re-focus on
their core competencies and outsource non-core activities.

There are several reasons why outsourcing is becoming a necessity. The prime reason
to outsource is to focus on core strengths and improve product differentiation and
innovation in order to gain sustainable competitive edge in the market place. Many
commercial establishments world wide have turned to logistics outsourcing as a way
to re-engineer their distribution networks in order to meet the global demand and also
gain competitive edge. We have various surveys discussing reasons for not

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 11

outsourcing Logistics activities. However, we do not have very clear picture about
what the users consider as the main reason for outsourcing. The following could be
possible reasons for outsourcing:

Reduce Operating Costs

Focus on core strengths
Create a Variable cost structure
Increase speed to market place
Conserve Capital
Foster Innovation
Improved Customer Service Levels
To create a flexible supply chain

In China17, reducing logistics cost is the prime reason for outsourcing followed by
Ability to focus on core business, Improve customer service and quality, Simplify
complex operations, Improve Logistics chain flexibility.

Where as the Australian users16 indicate that the Customer satisfaction as reason one
for outsourcing and followed by Flexibility, Productivity Improvement, Cost Savings,
Focus on Core business, Access to up-to-date techniques and expertise and employee
morale is given least preference.

The New Zealand users15 reveals that Focus on Core business as the primary reason
followed by Reduce costs, Reduce Investment in facilities and Inventory, Access to
cutting-edge technology & acquire expertise, seek greater flexibility, respond quickly
and others.

The Capgemini report6 identified factors affecting 3PL user firms and they are,
Significant pressures to reduce costs, Emphasis on improving supply chain, Pressures
to enhance customer service, Globalisation, Rapidly accelerating new product
introductions, Implementation of information technology, Consolidations, mergers,
acquisitions etc., New Markets, Security Issues, Intensifying Government and
regulatory policies etc., All these factors will strongly encourage companies to
outsource logistics activities.

6.00 Factors influencing 3PL selection

Selecting a 3PL operator is a very critical job. It is as critical as selecting your

partner. Most of the organisations do use a very scientific approach in selecting 3PL
partner. In this section we will review the key selection attributes region wise as well
as globally.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 12

6.1 Focus North America and Western Europe and All regions

North Western
Attributes All regions
America Europe
Service 3.2 3.5 3.4
Price 3.2 3.5 3.2
Product 3.0 2.9 3.0
Access 2.8 2.6 2.7
Experience 2.8 2.5 2.7

Exhibit 4*

The North America and Western Europe user preferences are the same6. They give
top priority for the Value-added services provided by 3PL companies (service) as
most important selection attribute followed by Fess paid for 3PL services (Price),
Core services (Product), Ease of doing business (Access) and finally Overall feeling
about 3PL (Experience).

* All regions include Latin America also. Measured on a scale of 1 to 5, one being least important and
5 being most important.

6.2 Focus Asia Pacific

Attributes Asia-Pacific
Service 3.5
Product 3.4
Price 2.8
Access 2.7
Experience 2.6

Exhibit 5+
+ Measured on a scale of 1 to 5, one being least important and 5 being most important.

The main difference in the Asia Pacific user’s preferences6 is that they would prefer
Overall feeling about 3PL than the price. The same feelings were reflected in the
surveys conducted in China14, Australia16 and New Zealand15. The selection criteria
are different in three different countries. Logistics Outsourcing is still evolving in
Asia Pacific region. Hence, the focus is more on Overall experience than costs. Each
country reviewed hereunder has different set of selection criteria. In order to present
the uniqueness of each survey, I have presented them as revealed in the survey.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 13

6.2.1 Focus China

According to China Survey17, the selection criteria attributes are given with
percentage of preference in the exhibit given below:

Attributes %
Industry/operations experience 31
Reputation 18
Network coverage 16
Lower price 16
Own strategic assets 9
Integrated logistics capabilities 4
Good IT system 4
Strategic fit 2
Exhibit 6

6.2.2 Focus Australia

The ALPHA Survey16 posed the same question to the 3PL companies as well as the
users. What is presented hereunder is the user response which is critical.

Rank Selection Criteria Mean Rating

1 Supports our Custer Service 4.49
2 Reliability 4.38
3 Committed to us 4.29
4 Integrity 4.27
5 Trustworthy 4.23
6 Economic benefit 4.22
7 Improves Market Position 4.07
8 Knows our business 3.99
9 Strong Reputation 3.82
10 Potential Synergy 3.66
Exhibit 7 #

# Measured on a scale of 1 to 5, one being least important and 5 being most important.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 14

6.2.3 Focus New Zealand

The below given selection criteria was ascertained from Massey University study15.

Factors influencing the selection of a 3PL Priority

Logistics Provider (Mean)
Responsiveness 4.78
Ability to meet or exceed promises 4.67
Quality of the provider’s management team 4.52
Experience 4.48
Flexibility 4.41
Information systems/technology capabilities 4.27
Financial stability 4.19
Availability of top management when necessary 4.00
Price 3.85
International Scope 3.56
Location 3.56
Quality Certification 3.22
Asset Ownership 2.70
Exhibit 8

Measured on a scale of 1 to 5, one to three, not important and 4 and 5 being very important

7.00 Logistics and Supply Chain activities outsourced

One of the innovative trends used today is the outsourcing of logistics to manage
complex distribution requirements, postponement of manufacturing, cross docking,
Kitting or Assembly, Inventory Financing, Vendor Managed Inventories, Reverse and
Repair Logistics etc. This triggered phenomenal growth in 3PL business world wide.

The author classified outsourcing into three categories. The first level of outsourcing
is transactional outsourcing. This is typically based on transactions and no long term
contracts and no bonding between 3PL and outsourcing company. These types of
outsourcing are driven by pricing. The
second classification is Tactical outsourcing.
This kind of outsourcing is on medium to
long term basis with negotiated contacts in
place and with integrated IT systems, to
facilitate free flow of information and create
supply chain visibility. The pricing will
remain a factor but not prime factor for this
kind of outsourcing. This is considered as a stepping stone for strategic alliances
which is the third category. Strategic outsourcing is also known as Strategic Alliance

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 15

or Collaborative alliance. This type of outsourcing is based on long term relationships
with successful outcomes or based on strategic issues. In this category the 3PL
companies become partners in supply chain management and complete transactional
transparency will be established.

Very few 3PL companies are able achieve this status with their customers by
constantly innovating and constantly maintaining operational efficiency and integrity.
Some even follow open book costing method and gain share concepts to demonstrate
the transparency and win confidence of the customers.

The below given table is produced by the author based on Cap Gemini report6, The
2003 China Logistics user Survey14, The ALPHA Survey – 200316, and Massey
University Study 200315, in order to explain different levels of outsourcing and
Logistics activities outsourced to 3PL companies.

Logistics Activities outsourcing in %

Logistics Activity North Western Asia New
China
America Europe Pacific Zealand
Strategic Activities
4PL Services 1 10.00 19.00 24.00
Carrier Selection 13.00 25.00 8.00 21.00 3
Consulting Services 21.00 12.00 28.00 7.00
Factoring (Trade Finance) 2.00 7.00 0.00 5.00
Freight Bill auditing/payment 53.00 19.00 8.00 7.00 10.50
Information Technology 19.00 24.00 16.00 11.00 15.80
Inventory Ownership 6.00 9.00 4.00
Product
Assembly/Installation/Manufacturing 16.00 16.00 12.00 9.00
Rate Negotiation 14.00 12.00 0.00 7.00 10.50
Supply Chain Manager 7.00
Tactical Activities

Inventory Management 16.00 27.00 40.00 27.00 10.50

Order Entry/Processing/Customer Service 8.00 7.00 16.00 23.00 2
Order Fulfilment and distribution 35.00 22.00 52.00 14.00 10.50
Procurement Logistics 16.00 33.00 24.00 5.30
Product Marking/ Labelling/Packaging 25.00 29.00 20.00 18.00 15.80
Product Returns and Repair 22.00 30.00 36.00 5.00 15.80
Returns/Reverse Logistics 27.00 32.00 32.00
Shipment planning/Distribution Control 13.00 15.80
Warehousing 72.00 70.00 88.00 46.00 52.60
Transactional Activities
Cross-Docking/Shipment Consolidation 55.00 49.00 40.00 49.00 47.40
Customs Brokerage 60.00 34.00 88.00
Customs Clearance 57.00 48.00 68.00 29.00
Fleet Management 9.00 18.00 40.00 21.00 10.50
Freight Forwarding 47.00 40.00 84.00 38.00
Inbound Transportation 54.00 82.00 84.00 63.00
Outbound Transportation 66.00 89.00 100.00 86.00 78.90

1 Trademarked by Andersen Consulting (now Accenture)

2 Included in Order Processing and Fulfilment
3 Carrier selection was included in rate negotiation

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 16

 Exhibit 9

Where as The ALPHA Survey – 200316 projected the same information on scale of
one to five, one being “Not at all or low” and 5 being “Very extensive or High”. Here
is the classification of logistics activities outsourced in Australia.

Logistics Activities outsourced in Australia

Australia -
Activity
Mean rating
Strategic Activities
Carrier Selection 2.28
Freight Payment 1.91
Logistics Information Systems 2.48
Product Assembly/Installation 2.03
Rate Negotiation 1.95
Tactical Activities
Customer Spare parts 1.92
Inventory Replenishment 1.88
Order Fulfillment 2.85
Product returns 2.76
Warehousing 3.07
Transactional Activities
Fleet Management and operations 3.00
Inbound Trasnportation 4.18
Outbound Transportation 4.70
Shipment Consolidation 2.95

Exhibit 10

8.00 The future of Logistics Outsourcing

3PL service providers are continually looking to provide innovative supply chain
solutions to customers by focusing on value-added capabilities, differentiating
themselves from the competition. They focus on priorities, such as implementing
information technologies, developing customised management processes, integrating
services and technologies globally, and delivering comprehensive solutions that create
value for 3PL users and their supply chains.

8.1 Focus North America

In view of the amount of manufacturing that has moved from North America to other
geographies, the Logistics outsourcing particularly in the areas of value added
services in North America is going through a “no” growth period. The same feeling

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 17

was reflected by CEOs of twenty three 3PL companies interviewed by NEU and
Accenture in 20045. Only ten out of twenty three CEOs confirmed that their North
America Operations are not affected due to shifting of manufacturing base from North
America to other cost efficient locations.

8.1.1 Highlights:

1. Logistics outsourcing industry is expected to grow at the rate of 9% per annum

in North America and 10% growth in the next Three years according to NEU
and Accenture 7 report.

2. Increasing use of Information Technology by 3PL companies. The Capgemini

report6 indicates that 91% of the users believe that IT capabilities are
necessary for 3PL companies. Only forty five percent indicated that there are
satisfied with the 3PL current IT capabilities. Fifty three percent users have
indicated that RFID is their future requirement.

3. Greater product sourcing from overseas, with a notable increase from China,
will drive logistics suppliers to expand global operations and increase usage of
3PL services including inbound freight management. There will be increase
of 40% in 3PL service used in China by US manufacturers according to NEU
and Accenture report7.

4. Logistics providers continue to shift toward a one-stop model to offer

comprehensive services and control more of the supply chain. The NEU and
Accenture report5 indicates that apart from global expansion other
opportunities for 3PL companies include, further supply chain integration,
further IT integration and increased customer collaboration.

5. Forty seven percent of North American users believe that existing 3PL
companies are best suited to offer 4PL service6.

6. 3PL industry is going through mergers and acquisitions keeping in view of

global challenges. North America will witness increase in this activity. “We
expect the M&A trend to increase in 2004 and we reiterate our belief that
deals will get done for strategic reasons rather than for market share”.18

7. Majority of North American users have indicated that service consideration

comes first while renewing the existing contracts followed by cost
consideration, IT capabilities and reliability.7 Fifty one percent users indicated
that lack of ongoing improvements and achievements in offering is the number
one area identified for 3PL service offering improvement. 6

8.2 Focus Western Europe

“Increased outsourcing of key internal logistics functions, the growth of important

regional retail markets in France, Italy and Benelux together with the expansion of
warehouse space in France and Italy is poised to drive revenue growth in the
European warehousing markets.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 18

At the same time, the growth of retail and FMCG end-user sectors in Western Europe
is also set to boost warehousing market revenues. Buoyed by these trends, revenues in
the European warehousing markets are anticipated to rise from 18.5 billion euros in
2003, to an estimated 25.4 billion euros in 2012,” 19
Further, the above report reveals that, the 3PL – warehousing market is highly
fragmented with large number of small and medium sized 3PL companies operating
across European Markets. As the manufacturing firms are outsourcing significant
portion of their Logistics activities in order to reduce costs, we will notice increase in
3PL mergers and acquisitions like North America. Further market consolidation
among the leading 3PL companies are likely to be initiated with a primary objective
of cost reduction. This report also indicates shortage of skilled labour as hurdle for
the 3PL growth. According to the NEU and Accenture report12, major source for
Management talent for 3PL companies is other 3PL providers. This reveals the
criticality of the issue.

"There will be continued growth in the outsourcing of more complex logistics tasks
such as order handling, logistics management, and the provision of value-added
services," said Tom Mills, Datamonitor logistics analyst.20

8.2.1 Highlights

1. Western Europe market projected growth is no different from North America

Projected growth. Both these markets are experiencing similar hurdles in
increasing the share of logistics outsourcing. The NEU and Accenture report12
projects ten percent growth for one year and eleven percent growth for the
three year period.

2. Increasing use of Information Technology by 3PL companies in Western

Europe is no different from North America. The Capgemini report6 indicates
that 92% of the users believe that IT capabilities are necessary for 3PL
companies. Only forty five percent indicated that they are satisfied with the
3PL current IT capabilities. Sixty one percent users have indicated that RFID
is their future requirement.

3. The three industry dynamics identified in the Western Europe market by the
NEU and Accenture report12 include, continuing downward pressure on
pricing, large scale mergers of 3PL companies and increasing pressure to
internationalise.

4. Lack of variety in the service offerings and lack of strategic management skills
seems to be an issue with Western Europe users6. It is time for these advanced
markets to focus on 4PL companies to support organisational supply chain
strategy. If the 3PL companies remain focussed on transactional management
and ignore strategy development, 4PL Company’s growth is assured and 3PL
companies will loose wonderful opportunity to diversify into new avenues of
revenue generation.

5. Eastern Europe is a potential growth market. Due to shift of manufacturing

base, more logistics activities will be shifted to Eastern Europe and it is

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 19

 projected that there will be 150% increase in revenue generation from Eastern
European countries for 3PL companies by 200612.

6. Large percentage of Western Europe users (32%) views their 3PL companies
as Logistics Strategists when compared with North America and even the
growing market of Asia Pacific6.

7. Twelve percent increase in customer rating as far as outsourcing success is a

positive note for 2004 for Western Europe logistics outsourcing initiative6.

8.3 Focus Asia Pacific

Supply Chains in Asia are fragmented and less competitive when compared with US
and Europe. This does not mean that Supply Chain excellence, a key driver of value
addition and competitive differentiation across industries is ignored in Asia. The
growing trend of manufacturers and retailers to outsource and produce abroad,
particularly in Asia, has led to a situation where trade outstrips capacity, and the
world’s transportation and 3PL infrastructure is struggling to keep its head above
water. As the world focus is shifting to Asia Pacific region and particularly China,
the supply chain and logistics outsourcing market is expected to be US $ 12.08 billion
in next three years according to China’s State Economic and Trade Commission.
International Data Corp (in 2001) predicted the Asia-Pacific logistics outsourcing
market will reach US$29 billion by 2005.

8.3.1 Highlights

1. The Asia Pacific market is expected to grow at a phenomenal rate of 15% per
year over next three years. China will be the focussed market as far as growth
is concerned and India will be second targeted country by the 3PL industry13.

2. Three industry dynamics identified are, continued growth of Chinese

economy, continued downward pressure on prices (this factors is universal)
and growing consumer expectations for IT support. Forty eight percent users
feel that 3PL companies are not keeping up with advances in IT. One hundred
percent users believe that IT capabilities are a must for a 3PL company. Only
twenty four percent are satisfied with current IT capabilities of 3PL
companies. 6

3. Seventy one percent of users feel lack of ongoing improvements and

achievements in service offerings and fifty seven percent feel that 3PL
companies lack strategic management skills. 6

4. Around 21% increase is projected in logistics outsourcing spend for the period
2007-2009. 6

5. Thirty four percent growth in outsourcing of inbound transportation indicates

the shift of manufacturing base to Asia Pacific market. 6 & 8

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 20

 6. “According to the statistics from Customs General Administration of the PRC,
the annual growth rate of China’s imports and exports between 1980-2003 is
14.5 percent (14.9 percent for exports and 14.1 percent for imports), a rate that
is higher than China’s economic growth over the corresponding period and
also much higher than the rate of world economic and trade growth. In 2004,
China’s foreign trade is expected to exceed the benchmark of $1000 billion,
which will make China the third biggest trading economy in the world.”

7. The impact of RFID usage in US is also felt in Asia Pacific region. Fifty nine
percent believe RFID is a requirement in future and only nine percent are
currently using. 6

8. The perception of the user about the outsourcing success is registering a

downward trend in spite of growing outsourcing industry. Around twelve
percent negative growth in user’s perception indicates that 3PL companies
have to pull up their socks. 6 & 8

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 21

9.00 Discussion on managing 3PL relationship:

Unfortunately 3PL relationships are always not successful. According to a recent

Warehousing Education and Research Council (WERC) pamphlet reported that 55%
of logistics outsourcing alliances are terminated after 3-5 years. In some cases it was
noticed that the relationship ended even before completion of the first year of
operation. According to a survey reported by the Journal of Commerce3, 43% of
identified users of 3PLs in North America cancelled at least one 3PL contract in 1998.
The main reason for this failure could be the gap between expectations and the reality.

According to this author, most of the 3PL relationships goes through four critical
stages and they are courtship
(happy time); battleship
1. Level Setting;
(struggle); hardship (resistance) Partnership 2. Dependent;
(Mutual benefit)
and relationship (mutual benefit). 3. Period of bonding.

In order to reach the pinnacle of 1. Cost over-runs;

Hardship
relationship management, it is (Resistance)
2.
3.
Service will never meet targets;
Period of Questioning.

very much necessary for both the

parties to nurture the bonding in Battleship 1. Start-up hick-ups;
2. Service below expectations;
order to make Logistics (struggle)
3. Period of Great tension.

outsourcing a great success. The 1. Initial enquiry;

outsourcing arrangement can be Courtship 2. Awarding RFQ;

(Happy Time) 3. Period of High Expectations.
successful only when there is
mutual trust and respect in
relationship. Unless there is this sense of integrity in the relationship, it most certainly
will fail.

Hence, it is very much necessary to take care of certain issues in outsourcing in order
to enjoy the benefits. Here are some of the challenges in managing logistics
outsourcing relationship.

9.1 Challenges and Solutions

9.1.1 Lack of Outsourcing Strategy

Lack of Outsourcing Strategy means no clarity on the subject of outsourcing and

outcomes. Outsourcing strategy should always be a well thought out and carefully
measured against an "in-house" solution and capabilities. Outsourcing the Logistics
function can free up companies to focus on their core competencies. This was
reflected in 2002 Outsourcing World Summit as well as many logistics outsourcing
surveys conducted across the word. A SWOT analysis will always help the
organisation in understanding clearly the strengths, weaknesses, opportunities and the
threats of outsourcing logistics activities versus in-house solutions. While Request for
Information (RFI) is a tool to gather information and measure the strengths with
respect to capabilities and cost effectiveness of outsourcing, sometimes this can also
mislead due to over commitments by the service providers. Sixty two percent North
American users, forty eight percent Western Europe users and seventy one percent
Asia Pacific users conveyed that service level commitments made by 3PL companies
are not realized6.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 22

The dissatisfaction of the user will be felt in the second or third stage of relationship
management. When 3PL companies fail to deliver the agreed service levels the users
feel deprived and feel the loss of control over their own operations. Recent surveys
indicated that loss of control is the primary reason for not using 3PL services6.
Further, the users believe that logistics outsourcing creates unrest within the
organisation. However, according one of the surveys conducted in US in 2004
reported that only 40% of the respondents have reported negative impact on employee
morale due to logistics outsourcing7.

Keeping in view of these conflicting feelings conveyed through various surveys, it is

very much necessary to understand whether the organisation is well equipped with
necessary skills and mind set to outsource Logistics activities. Further, it is also
necessary to gauge the impact of outsourcing decision on the organisation and
examine the ability to go through the proposed change management process. The
resistance to this change could come from three angles and they are, the content
(outsourcing decision), the methodology (the implementation process) and from the
people (due to possible job loss). Unless comprehensive study is conducted and
clearly documented the advantages, challenges and cost benefits of outsourcing, it is
not advisable to outsource Logistics activities. One thing is sure that Logistics
outsourcing is not a fad; it is a necessity if we can clearly evaluate the pros and cons
and prioritise business objectives. This fact was supported by numerous survey
reviewed in this article. Even if a firm has the available resources to perform a
particular logistics task, another external organisation within the supply chain may
sometimes be better suited to perform that task, simply because its relative position in
the supply chain, supply chain expertise and economies of scale. Hence, a well
developed strategy document is crucial in Logistics outsourcing decision making
process.

9.1.2 Absence of Robust Selection Process

Absence of Robust Selection Process can derail the objectives of outsourcing. Before
any organisation embark on the selection process, it is very much necessary to adopt a
scientific selection process or appoint a consultant (specialist in this area) to assist in
short listing and recommending the suitable service provider. Further, it is also
necessary to document the expectations in clear terms along with current performance
standards and costing information. This would help the outsourcing organisation to
evaluate the success of outsourcing from time to time. A site visit and one to one
interview with one of the existing customers of the service provider are very much
part of the selection process.

It would be ideal to develop SOP (Standard Operating procedures) for all the
processes to be outsourced. This would eliminate any gap in understanding of
expectation. The standard procedure followed in the selection process include, invite
all eligible 3PL companies for a formal presentation on capabilities without giving
any information about the requirements. This will help the outsourcing organisations
to assess the strengths and weaknesses of each 3PL company and their specialisation.
This would help in eliminating some 3PL companies and the second stage could be a
RFI (Request for Information) or a RFQ (Request for Quotation). The RFQ document
should always accompany with all relevant documents about the project and
expectations with regard to performance standards and statistical data. Once some

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 23

more filtering is done on the basis of expertise, suitability and cost effectiveness, it
would be ideal to visit few sites of 3PL companies and talk to some of their customers
to gather first hand information and finally conduct reference checks in order to select
a suitable 3PL company. It may not be necessary to select a 3PL on the basis of cost
effectiveness only. What is more important is compatibility. Majority of North
American users have indicated that service consideration comes first while renewing
the existing contracts followed by cost consideration.6

9.1.3 Inefficient Costing methodology

Inefficient Costing methodology will directly contribute to the downfall. An efficient

costing system will not only help in understanding the costs involved in outsourcing
but also will help the organisation in measuring the cost efficiency. Often we hear the
question, "Are we making any money doing this?", or the answer, "I don't know. We
don't have the costing data." Collecting cost data relative to a specific functional area
is a challenging task. Gathering detail on the true costs of receiving, storage, pick-n-
pack, value-added processing, special packaging, staging and shipping is fundamental
to performance assessment for an organization. Clearly, Activity Based Costing
(ABC) offers great potential for improved performance and competitive
differentiation. Activity-based Costing enables organisations to enhance profits
through cost control and tracking practices. It would be always advisable to avoid
“pallet in” and “pallet out” costing method and adopting Activity Based Costing
would help to achieve the cost objectives of outsourcing. The North American and
Western Europe users prefer deal structures which eliminates risk of outsourcing.
However, Asia Pacific users are still follows the conventional costing methodology6.
Further, ABC will also help us to understand the variance between projected costs and
actual costs in three forms of variance; they are cost variance, volume variance and
the norm (standard) variance. An efficient costing system and periodical cost analysis
which is translated to performance indicators will help both the parties to keep the
project on track. According to one of the surveys, the users conveyed that fifteen
percent cost reduction was achieved in North America and Asia Pacific and eleven
percent in Europe6. However, in the recently conducted surveys fifty one percent
North American users, thirty five percent Western Europe users and forty three
percent Asia Pacific users believe that the costs creep and prices increase once
relationship is established. Further, forty seven percent North American users, forty
three percent Western Europe users and fifty two percent Asia Pacific users conveyed
that cost reductions were not realized. 6 These facts suggest that 3PL relationships
thrive on structured costing agreements.

9.1.4 Inept Legal Documentation

Inept Legal Documentation will also add confusion to the relationship and contribute
to the failure. Even though contracts are administered and managed by humans
through structured processes, it is very much necessary to document what is agreed
and what is disagreed clearly in order to avoid ambiguity in the relationship. The
legal document (contract) should address all possible friction points and address them
with remedies. In the absence of clarity, confusion prevails and confusion leads to
inefficiency and inefficiency leads to downfall. Exit strategies such as mediation and

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 24

arbitration should also be part of any 3PL contract. Contract logistics services are in
high demand as more and more organisations move towards more contractual
partnerships with third party service providers. Many companies have overlooked
critical areas when they define their contract relationships. The Massey University
Study15 indicates that around eleven percent users in New Zealand do not have any
formal contract in place.

9.1.5 Lack of Project Implementation strategy

The start-up phase is a strong determinant of how a 3PL relationship will evolve down
the road. Though the 3PL's implementation team is generally responsible for
execution, the customer also plays a critical role in the partnership's initial success.
Lack of Project Implementation strategy will negate advantages of outsourcing.
There must be a detailed project implementation plan also known as road map as well
as periodic reviews also known as mile stones should be in place to make sure
everything is on track. This makes the management of the project easier and guards
against drastic deviation in the scope of the project. Inefficient handling of the project
implementation will lead towards project failure before the take off. The process of
project implementation is a very tricky one. This is the process of translating
thoughts into deeds. This process needs active co-operation and co-ordination of both
the parties. Logistics outsourcing project implementation includes system (IT)
integration, customisation of operating procedures, adapting to the service measures,
understanding the exceptions management process, defining the escalation process
etc. All these activities need precise handling and a dedicated team. Many
outsourcing organisations believe that Contract Logistics Project Management is the
responsibility of the 3PL company. In fact it is a team effort. A project management
team should consist of stake holders from both the organisations. It is an ideal time to
build relationships and establish communication channels to avoid bottlenecks in
future and enable free flow of information. There are several efficient project
implementation methods in use and each 3PL company will have its own
methodology. What is critical is customisation, to suit the specific requirements and
deliver agreed service levels. Twenty nine percent Americans, twenty one percent
Western Europe users and twenty four percent Asia Pacific outsourcing community
believe that the transition during implementation stage was not satisfactory6.

9.1.6Absence of Efficient Performance Measurement system

One of the most critical tasks during the start-up phase is developing performance
measurements and reporting methods. The customer must take initiative to design
measurements that support the company's business goals for the outsourcing strategy.
Absence of efficient Performance Measurement system will also directly contribute to
the downfall of outsourcing initiatives. The five studies published by the Council of
Logistics Management on the subject of performance measurement in logistics had
three significant findings in common. 1. Most firms do not comprehensively measure
logistics performance, 2. Even the best performing firms fail to realize their
productivity and service potential available from logistics performance measurement,
and 3. Logistics competency will increasingly be viewed as a competitive
differentiator and a key strategic resource for the firm.

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 25

Efficiency is critical to profitability, it is of little value unless it accompanies by
another quality: effectiveness. While efficiency defines the economical use of
resources, effectiveness reflects how well a process achieves its business objectives.
Hence, it is very much necessary to identify “Qualitative Measures” which focuses on
effectiveness and “Quantitative Measures” which focuses resource efficient
utilisation. The 3PL performance should be measured on well defined qualitative and
quantitative performance measures periodically. Ideally, Financial, Productivity,
Utilisation, Quality and cycle time measure should be considered while defining the
performance measures. This is a very critical exercise and while defining the
measures, it is very much necessary to follow a practical approach and based on
current performance and taking into account the expertise of the service provider.
Ambiguous and ambitious performance targets will ruin the whole objective of
outsourcing as well performance measurement. One of the objectives of Performance
Measurement is not only to measure the performance but also initiate necessary
corrective action with regard to negative performance and explore the possibility of
gain share arrangement with regard to positive performance in order to encourage
continuous improvements. Periodical performance measurement presents an ideal
opportunity for both the parties to discuss and communicate effectively to make the
outsourcing a grand success. Some of the Fortune 500 companies do measure
performance on daily basis, weekly basis and monthly basis, however discuss on a
quarterly basis which is known as QBR (Quarterly Business Reviews).

10.0 Conclusion

Outsourcing logistics activities to a 3PL has been a means of leveraging economies of

scale and tapping into a logistics infrastructure which includes IT systems, human
resources and knowledge base that delivers increased robustness to a company’s
logistics and supply chain operations. Logistics outsourcing has improved
productivity and significantly reduced costs in many instances.

The success of partnerships with 3PLs requires a combination of trust and

collaboration. That could be the reason that strategic alliances are now a day called as
collaborative alliances. Trust determines the level of flexibility one can allow the 3PL
in managing the operations to the best of their capability which, in its own right,
should exceed outsourcing organisation’s abilities. In order to achieve the agreed
performance and cost goals, it is necessary to have a partner who can deliver best of
the breed solutions. Therefore, it would be wise to acknowledge the abilities of the
3PL, agree on a mutually beneficial business arrangement, and trust that they will do
what is in your best interest. Recently, “Eye for Transport” conducted survey in
North America on “Outsourcing Logistics – The latest trends in using 3PL providers”
in January 20052 and this report indicates that 65% of the respondents have reported
that the 3PL performance is good, 12% felt that the performance was higher than
expected and 4% reported that it was outstanding.

With this optimistic note I would like to conclude this article. Before I do that, let me
mention the preaching of Mr. Tom Peters, U.S. management guru on outsourcing, ‘Do
what you do best and outsource the rest.’

Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 26

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Global Logistics Outsourcing trends: Challenges in managing 3PL relationship 28