May 2019

Reasons to Outsource

• Flexibility (No/Low fixed costs)

• Higher volumes can be achieved & synergy created with other clients of the 3PL in an outsourcing solution. Scalibility means costs go down & service levels go up

• Specialized warehouses & logistics system (large capital investment) are required

• Focus on core activities

• Insufficient expertise on local supply chain market available

• Back office services offered by the service provider

Ref: NDL