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