What are some of the critical mistakes people make when outsourcing logistics to 3PLs?

Outsourcing is a strategic decision, and when we talk about logistics the make or buy decision becomes very complicated.

Why?

- because logistics is a service and services are difficult to compare before the experience

"There is a subjective element how great the service will be because all customers are not treated the same"

Wallmart and Ikea ship much more volume and containers.

Do you think you will get same service as them from Maersk?

- Logistics is about solutions

One can assemble services into a great logistics service combining carriers, forwarders and system providers. There is an infinite mix of options with pros and cons.

And all we know is someone will invent a new way of combining the building blocks in a concept that is larger than the sum of its parts.

- Logistics is about Win/Win

Down the chain all need to be making a living. Squeezing the smal partners is fine but will come back as a boomerang as lower quality service!

- Logistics is about service via technology

Better ships, planes and trucks, better infrastructure and equipment, top IT to automate document handling, better tracking technology and other enablers that reengineer the supply chain and offer top quality services at lower costs.

- logistics is about flawless execution

Better get it right first time. Each mistake is costly!