Logistics outsourcing – once the domain of those with no logistics function – is now seen as a way to differentiate and build resilience , explain PwC ’ s MILES LETHBRIDGE and TOM WOODHAM
Logistics outsourcing is now mission critical
Logistics outsourcing – once the domain of those with no logistics function – is now seen as a way to differentiate and build resilience , explain PwC ’ s MILES LETHBRIDGE and TOM WOODHAM
WRITTEN BY : SEAN ASHCROFT
For years , many organisations for whom logistics is not a core competency have preferred to bring in specialist logistics service providers to keep goods moving . In the wake of the pandemic – which saw businesses struggle with shipping delays and huge spikes in demand – the use of third-party logistics providers ( 3PLs ) has become increasingly common .
Specialist logistics firms offer a spectrum of services , from basic transport services to inventory management , warehouse management , fulfilment and returns . But what are the advantages and disadvantages of using such businesses to handle logistics ?
To seek insight on this , we turned to PwC colleagues Miles Lethbridge ( ML ) and Tom Woodham ( TW ).
Lethbridge is Director of Mergers and Acquisitions Consulting , and has extensive experience in the logistics industry , operational leadership , business development , supply chain development and operational diligence .
Woodham is a Partner and specialises in leading supply chain transformations for PwC ’ s customers .
Why are ever-more businesses outsourcing logistics ? ML : Some of the reasons for outsourcing logistics are unchanged – such as logistics not being an area of expertise , wanting to leverage a 3PL ’ s scale , and the desire to make costs more variable – to align with fluctuating demand .
The past couple of years have put unprecedented pressures on supply chains ,
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