Wednesday, September 2, 2020

levels of outsourcing

Levels of Outsourcing in Third Party Logistics Services

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Not all third party logistics services are created equal when it comes down to the relationship in the way you as a shipper will outsource to them. So, after you understand what a 3PL is and the types of third party logistics services, the following are the different types of levels of outsourcing you can see:t

  • Transactional Outsourcing: Based on transactions, with no long term contracts and no bonding between the 3PL and the outsourcing company.
  • Tactical Outsourcing: Outsourcing on a long term basis with negotiated contacts and integrated IT systems to facilitate free information flow and create supply chain visibility.
  • Strategic Outsourcing: Based on long-term relationships with successful outcomes, 3PL companies become partners in supply chain management and establish transactional transparency.

hird party logistics services are created equal when it comes down to the relationship in the way you as a shipper will outsource to them. So, after you understand what a 3PL is and the types of third party logistics services, the following are the different types of levels of outsourcing you can see: