3PL Advantages And Disadvantages

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In order to choose proper 3PL depends on various factors, before underlining major elements I want to write about the term “one fits all”. It is impossible to copy paste one organization’s strategy to another. Supply chain and logistics strategies critically depend on company’s overall strategy, production flow, and on the product itself. Supply chain strategy of Apple, to in-house retailing and supply chain of Dell to outsource retailing functions are different obviously because as I mentioned earlier it depends on the product. It also depends on organization’s culture, the structure of the firm, the condition of the market, company’s strength and capabilities within the market. Learning from prosperous supply chain tactics can be lucrative…show more content…
The source how to control 3PL is very simple, it depends on growth rate of customer satisfaction and also on achievement of goals which were agreed before. In Some cases logistics outsourcing works well and sometimes not. So I can say that 3PL also has some disadvantages. While choosing third-party provider, company has to make sure that it is a provider which company can trust. The main disadvantage of 3PL can be that control of the logistics process is lost, monitoring inventory levels takes place only in software. Outside party has ability to make decisions behalf its client. Outsourcing logistics can cause knowledge lost in organization, because these workers are no longer involved in logistical processes. This knowledge lost can become a huge problem if outsourcing agreement terminates, and client company becomes responsible for in-house logistics. Because enormous dependence is caused by outsourcing decisions. One of the key disadvantages of outsourcing is that it can indirectly harm reputation of the company. It is obvious that reputation is critical factor of customer satisfaction, and most companies try focus on building trust and…show more content…
For type B and C much merely construction is used to build and there are no requirements from the governmental departments. We can say that only type A warehouse can be usable for 3PL services, this is reason why only one company is in 3PL market. Gebruder Weiss transportation and logistics company based in Austria. It is the leader of Georgian 3PL , as I mentioned there are few more, like DHL but it is only offering courier and freight forwarding services for Georgian market. I can say that wealthy companies who need storage facility they cooperate with Gebruder Weiss in Georgia. The biggest company in Georgia, in terms of logistical transactions is Georgian Posta which carries out universal postal service. Georgian Posta has a huge number of customers and their customer satisfaction level is quite high. Number of parcels sent by Georgian Posta was 5458716 shipments in 2017. They outsource only air shipments, rest is done by local transportation fleets, which company owns. To sum up, I want to mention that 3PL companies are very important for small and large businesses as well, when the agreement can generate profit and increase supply chain surplus. The above mentioned companies are the leaders of Georgian logistics activities and all the important processes are

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