Title: Challenges of outsourcing logistics to third-party providers

Authors: A. Ansari, Batoul Modarress

Addresses: Department of Marketing, Albers School of Business and Economics, Seattle University, Seattle, WA 98122, USA. ' College of Business Science, Zayed University, P.O. Box 4783, Abu Dhabi, UAE

Abstract: The focus of this study is on the challenges that shippers faced using Third-Party Logistics (3PL) providers. The study is based on a mail survey of 126 shippers and personal interviews with eight shipper executives and four 3PL provider executives. The study first identifies the major challenges including, finding a 3PL with the capabilities meeting the shipper|s specific logistics requirements, the incompatibility of information systems between shipper and 3PL, the failure of 3PL to meet a shipper|s future growth needs, and issues related to security. Second, it offers some recommendations for shippers to consider in overcoming any challenges encountered.

Keywords: shippers; outsourcing; 3PL providers; third party logistics; shipping; client requirements; incompatibility; information systems; future growth; security; USA; United States; transportation; freight; distribution; warehousing; logistics systems; logistics management.

DOI: 10.1504/IJLSM.2010.034426

International Journal of Logistics Systems and Management, 2010 Vol.7 No.2, pp.198 - 218

Published online: 03 Aug 2010 *

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