Turning over distribution/fulfillment to a 3PL may or may not be the right move
Third party logistics companies have become an important part of today’s supply chain. They have grown as their clients decided to become leaner, conserve capital, and focus on core business strengths and processes.
On the other hand, many enterprises view distribution/fulfillment as a strategic tool driving their business models. For them, the supply chain is much more than a transactional process, it is a competitive weapon.
And so, the question becomes: Outsource distribution to a 3PL or fulfill from within through a wholly owned distribution center?
There is no simple answer to this conundrum. There are myriad factors to consider and subtle issues to analyze that can be best addressed with the assistance of a deeply experienced supply chain consultant.