LOGISTICS
• Contract management . It is not uncommon to see businesses set up a shadow logistics function to manage 3PL operations . Not only can this add unplanned costs , but it also adds a layer of decision making that can cause problems . Ensuring this approach to contract management – with appropriately timed reviews set up from the start – will maximise the benefits of outsourcing .
Under what circumstances do businesses choose not to outsource logistics ? ML : There are few examples of this . Most commonly , it is because logistics is a core part of the business and a point of differentiation . However , even in this case , certain non-core areas can still be outsourced .
“ Businesses see 3PLs as a way to help manage the increased levels of supply chain volatility ”
TOM WOODHAM PARTNER , SUPPLY CHAIN TRANSFORMATION , PWC
Other times , a business might require a certain level of operational maturity to outsource their logistics . This covers areas such as forecasting , systems , and data , all of which are key to enabling a 3PL to successfully pick up an operation .
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