Topic > The advantages and disadvantages of using third parties...

In order to improve operational efficiency, many companies have chosen to outsource part or all of their logistics activities to third parties. This way the company can focus more on its core activities. Green, Turner, Roberts, Nagendra & Wininger (2008) found that third-party logistics (3PL) companies typically offer services covering warehousing, distribution, inventory control, packaging, and transportation, such as transportation procurement and procurement , inventory management, logistics management and consultancy, transportation audit and consultancy, shipment tracking and tracing, and offering reverse logistics and other value-added services. The disadvantage for 3PL is the loss of control in some supply chain activities, but it is outweighed by the main advantage: 3PL knowledge and expertise in the industry.2.3. Supply Chain Collaboration Over the past few decades, companies have examined how to collaborate with their customers and suppliers to ensure that the supply chain is efficient and responsive to current market needs (Fawcett & Magnan, 2004; Lejeune & Yakova, 2005 ). . Mutual dependence in the current world market has become so important that an organization cannot achieve the required level of efficiency on its own (Mehrjerdi, 2009). Collaboration is the development of strategies in which two or more independent external or internal actors with different roles in the supply chain achieve their common goal in a competitive environment. These goals usually cannot be achieved by working separately. (Kumar and Banerjee, 2012). We can therefore conclude that collaboration in the supply chain is vital to gain competitive advantage and improve business processes. Managing the supply chain…… middle of the paper…… quantity of value-added services, strategic logistics services and know-how and ability to advise on innovations and improvements (Bajec & Zanne, 2009). To have successful collaborations there should be common goals and objectives for each party involved and the collaboration must be mutually beneficial. Collaboration is based on companies' willingness to share information related to planning, management, performance, etc. (Langley & Capgemini, 2009). There are several factors that influence and lead to a successful relationship, such as trust, commitment, openness, sharing of risks and benefits, communication, understanding of goals and objectives between the parties involved. Companies will reach a successful level of collaboration if the above-mentioned characteristics are taken into account and implemented in the working life of companies (Bajec & Zanne, 2009).