Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace

Third Party Logistics

Many companies have found certain benefits in out-

sourcing their logistics needs. The concept is that the com-

pany’s core business is manufacturing, assembly, distribu-

tion, or engineering, and so on, and the company chooses

to concentrate on that rather than master other skill sets for

its logistic needs.

Third party logistics is a growing global supply chain op-

tion. Many providers offer third party services. Basically,

the principal company, in lieu of hiring logistics expertise,

outsources the requirements to a third party provider.

Financial officers like the option because it moves expense

from payroll to a “cost of goods sold” column, which usu-

ally changes the financial picture favorably. Operations

management likes the ...