There is a rapidly growing demand for logistic outsourcing. It implies that an entire chain of deliveries or certain processes are delegated to an outside company. As a result, the cargo is tackled by professionals who guarantee prompt and safe cargo delivery, while the customer organization obviates the need to set up its own delivery department or to maintain its own auto fleet.
The following classification applies to the logistic outsourcing:
- 1PL – all logistic operations are carried out by the cargo owner directly;
- 2PL – an outsourcer will perform delivery and some of the warehousing operations;
- 3PL – an extensive array of services is available, with a possibility to cooperate with subcontractors;
- 4PL – the supplier of services is fully in charge of all logistic operations, including, of stock management;
- 5PL – the outsourcer supervises the entire delivery chain with the help of global information technologies.
Work pattern is selected on a case-by-case basis, subject to customer needs.
Irrespective of the list of services the logistic outsourcing is an optimal solution for the majority of organizations who may save their time and financial resources by focusing on their primary business.
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