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.

By · August 22, 2013

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.


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

3PL · FORTE Industries · · All Topics
Latest Whitepaper
Sorting Out Your Sortation Options
Guiding you through the process of evaluating and selecting the right “mission-critical” sortation solution
Download Today!
From the April 2017 Issue
How does a fastgrowing, e-commerce startup company build out order fulfillment capabilities? Thrive Market answered that question with its new facility in Indiana.
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
Putaway 101: Everything in its Place
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
ProMat closes: Make your plans for Modex 2018
With a record number of exhibitors and attendees seen at ProMat 2017, MHI anticipates more of the...
Keynote: Magic is the result of over-preparation and over-delivering to customers
During his keynote presentation Wednesday afternoon, Earvin “Magic” Johnson told a packed...

Keynote panel confirms digital supply chain shift seen in new MHI study
Wednesday’s keynote panelists agreed it is time to embrace the shift to digital supply chains seen...
MHI to honor original products, solutions with 5th-annual Innovation Awards
On Wednesday, during MHI Industry Night with Dana Carvey, the winners of the 5th-annual MHI...