Outsourcing logistics to third‐party providers: practitioners perspectives

As a result of globalisation, companies have been forced to shift their operations from internal provisioning to outsourcing to Third‐Party Logistics (TPL) providers. To date, no field surveys have been conducted to validate various assertions regarding the reported outcomes of using TPL providers. To address this research gap, this study employed surveys with executives of both shippers (customers) and TPL providers. Findings indicated that the major benefits of outsourcing logistics included achieving reductions in fixed assets, lower inventory, reduced logistics costs, and improved customer service. However, four major challenges were also cited.