7. Third-Party Provider

This is a case study of outsourcing logistics software to a company that can perform transportation scheduling and carrier selection more effectively and at a lower cost. Many companies choose third-party logistics (3PL) because they have more expertise and do more business with the carriers. This allows the 3PL to give a better freight rate. The 3PL also has longer standing relationships with the carriers, and this is important when a company needs to expedite merchandise or change existing routing.

So what are the advantages and technologies that a 3PL can offer that will improve the Transportation Management System (TMS)? There are incremental savings because of the 3PL’s economy of scale. For a firm to successfully ...

Get Sustainability in Supply Chain Management (Collection) now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.