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Sustainability in Supply Chain Management (Collection) by Steven M. Leon, Robert Palevich, Peter A. Soyka

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7. Third-Party Provider

This is a case study of outsourcing logistics software to a company that can perform transportation scheduling and carrier selection more effectively and at a lower cost. Many companies choose third-party logistics (3PL) because they have more expertise and do more business with the carriers. This allows the 3PL to give a better freight rate. The 3PL also has longer standing relationships with the carriers, and this is important when a company needs to expedite merchandise or change existing routing.

So what are the advantages and technologies that a 3PL can offer that will improve the Transportation Management System (TMS)? There are incremental savings because of the 3PL’s economy of scale. For a firm to successfully ...

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