Exactly how much coordination is possible from the 3PL provider’s stand point? From Fig. 4, we can see that within
the company, the 3PL provider can coordinate its inbound logistics with warehousing and also with outbound
logistics. Inter-company coordination can also be possible. Examples would include,
• Coordination among 3PL companies which form alliances
• Coordination with upstream manufacturer/supplier to synchronize production schedule with inbound transportation schedule
• Coordination with downstream customers/retailers to synchronize inventory level with outbound transportation schedule
However, the biggest barrier in inter-company coordination is in information sharing and the issue of trust. Many research works have been done in information sharing (to be discussed in section VI) which shows that companies which collaborate and share information reaped tremendous amounts of benefits.