A comparison chart
- between Insourcing, Multiple-Contractors and 3PL Outsourcing
Insourcing
- Creation of internal departments and sub-departments to manage Logistics
- Very high and fixed costs
- Maintaining fleet and equipment
- No flexibility in case of variation in requirement of fleet, equipment, space
Multiple Contractors
- Separate contractors for each service
- Increase in Vendor base leading to multiple service providers and multiple PO’s
- Optimisation / Integration between services not possible
- Staff required for monitoring efficiency of each service and service providers.
3PL Outsourcing
- Single integrated service provider for multiple services.
- Optimisation of resources between integrated services.
- Managed SLA based services with internal monitoring
- Flexible and scalable
- Cost-effective
- Performance-based
