LOGISTICS has been an important part of every
economy and every business entity. Logistics cost
average about 12% of the World’s GDP [1]. In Singapore,
logistics cost accounts for about 11% of its GDP
[2]. The worldwide trend in globalization has led many companies
to outsource their logistics function to Third Party
Logistics (3PL) companies, so as to focus on their core
competencies. In a recent study
[3] conducted by Cap Gemini Ernst & Young US LLC, Georgia Tech and Fedex,
involving 400 representatives from North America,
Western Europe and Asia Pacific, it is concluded that
logistics outsourcing remains a growing business globally.
On a smaller scale, Bhatnagar, Sohal and Millen
[4] reported that the need for logistics outsourcing is also
increasing in Singapore.