The overall trend in logistics outsourcing is moving in
two directions: (1) increase in the number of buyers of
logistics services, and (2) increase in the extent of usage of
logistics services. The extent of usage includes number of
activities or business process outsourced, geographical
coverage, nature and length of contract, percentage of total
logistics budget allocated to 3PL companies and level of
commitment [4]. In a typical 3PL arrangement (see Fig. 1), the 3PL