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Alex Rotenberg Interview
Outsourcing Logistics 3PLs: What are some of the critical mistakes people make in outsourcing logistics 3Pls?

Before asking this question we have to remember that outsourcing is always a strategic decision and when we talk about logistics this make or buy decision is even more complicated. Why is that?

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Well, very simply because logistics is all about service and service is all about perception so when we buy logistics service we have an idea what we buy but we don’t know what we get until we experience the service and very often our logistics partners are working for much larger companies like IKEA or Wal-Mart.

So the question is also whether we will get sufficient attention over the lifecycle of the contract we have with them.

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Another important point, is that when you outsource logistics you do not outsource the complete activity very often you are building a solution,

combining a number of building blocks like service providers, logistics carriers, forwarders, systems providers, etc.

Including very specific technologies to build better service at a lower cost and it’s very difficult to judge up front what you get.

Each solution has its pros and cons and you only know what you get when you have put it all together.

A last very important point, it’s that logistics works a lot with subcontractors so you have to make sure that all the parties involved have a fair mention, because if they don’t what will happen is that this will boomerang back to you in a form of bad service…