Cost reduction and enhancement of operational flexibility are the two main
reasons why firms outsource logistics—with fleet management, shipment consolidation,
warehouse management and order fulfillment being the most popular
services outsourced. The positive impact of the use of 3PL reported by firms has
been substantial in terms of logistics costs, customer satisfaction, internal logistics
and employee morale. However, there is also a negative impact in terms of fulltime
logistics positions eliminated as a result of using 3PL. Generally, companies
have been ‘satisfied’ with 3PL service providers.