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Infographic: How to Outsource Logistics

As OEMs outsource their logistics to third-party providers (3PLs), the benefits can be outstanding. However, it's important to plan carefully to get the best results.

On average, organizations can expect to reduce logistics costs by 9%, inventory costs by 5%, and fixed logistics cost by 15%, according to the recently published 2015 3rd Party Logistics Study (registration required). Further, most of those involved seem happy with the results of this type of collaboration; 73% of logistic service customers and 77% of 3PL providers said they “have received open, transparent, and effective communication from their partners.”

The infographic below, from the Logistics Bureau, offers eight steps to get from in-house logistics to working like a well-oiled machine with an outside provider. In addition, it provides a quick look at the state of the 3PL market.

Let us know what role 3PLs play in your supply chain. What lessons have you learned? Share your secrets in the comments section below.

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

7 comments on “Infographic: How to Outsource Logistics

  1. Susan Fourtané
    November 9, 2014

    According to the second image, Asia-Pacific is the chosen place for oursourcing due to cost. It would be nice to be able to make the image bigger to see in more detail the other things. It looks like an interesting infografic, though. 

    -Susan

  2. Daniel
    November 11, 2014

    “According to the second image, Asia-Pacific is the chosen place for oursourcing due to cost. It would be nice to be able to make the image bigger to see in more detail the other things. It looks like an interesting infografic, though. “

    Susan, as of now man power cost is less with Asia Pacific region, when compare with western & EU countries. But day by day that gap is minimizing and within a decade Asia Pacific countries may lose that edge. 

  3. Susan Fourtané
    November 11, 2014

    Jacob, 

    What would you say it is, or it will be causing the gap to shrink? As for the second image the differnece seems to be quite big, at leart at the time of that chart.

    -Susan

  4. Daniel
    November 11, 2014

    Hailey, the content of both images are not visible.  It remembers me like the small font wordings in SLA's and T&C; which they made purposefully to unread.  Next time please make it little bit bigger so that it can be in readable form.

  5. Daniel
    November 11, 2014

    “What would you say it is, or it will be causing the gap to shrink? As for the second image the differnece seems to be quite big, at leart at the time of that chart.”

    Susan, manpower cost in Asia-pacific countries is increasing day by day. Employees are in demanding mode. Most of the call center & BPO center business are migrating from India to Philippines and other countries. 

  6. Susan Fourtané
    November 12, 2014

    Thanks, Jacob. No doubt things will be changing as population redistributes for one reason, or another. Things will be very different in demographics in just a few years' time due to this redistribution. Borders will not make sense anymore, at some point. -Susan

  7. Daniel
    November 13, 2014

    “No doubt things will be changing as population redistributes for one reason, or another. Things will be very different in demographics in just a few years' time due to this redistribution. Borders will not make sense anymore, at some point. -“

    Susan, you are right. I think that's a global issue.

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