Trends in Logistics Outsourcing - A Closer Look at Third-Party Logistics

One of the best recognized and most analyzed trends to emerge in the last few years is outsourcing of the logistics function. As the concept has evolved over the last 10 years it has become obvious that numerous logistics activities can be effectively managed by third-party logistics providers (3PL’s) that specialize in select, or broad based logistics processes. Statistics back up the popularity and success of this outsourcing trend.

The movement to outsource logistics activities began in the early 90’s, and has grown at a 25% annual rate since. 3PL revenues now total over $70 billion, with more then 1000 3PL companies offering or claiming to offer services in North America. It is easy to be perplexed and confused when considering outsourcing logistics, but managers who persevere can be rewarded. Although there have been a few dramatic failures through the years, the trend is clear; outsourcing is here to stay.

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