Assume a logistics channel for a medium size manufacturer making shipments from a single location to customers across the USA in a variety of volumes, i.e., both LTL and TL. From the manufacturer’s perspective, explain the advantages and disadvantages of using a 3PL.
Expert Answer
The decision to keep these functions in-house or contract with one or many third-party logistics companies is entirely strategic and can dramatically impact any organization’s bottom line. In fact, according to consulting firm Armstrong & Associates 86% of Domestic Fortune 500 companies use 3PLs for logistics and supply chain functions. Consumer packaged goods giant
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