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IT Challenge: Finding the right number of 3PL providers

In this IT Challenge, we'll explore the third-party logistics (3PL) selection process and examine when multiple 3PL providers may be needed.

The IT Challenge of the Month for October 2011:

My organization is currently looking into third-party logistics providers (3PLs) to manage our shipping and logistics. We have facilities across the globe; should we plan to hire multiple 3PL providers, or is it better to stick with one 3PL for all transportation needs?

Do you have a solution to this challenge? Have you encountered a similar issue at your business? If so, please contact the editors and share your suggestions or experiences. 

IT Challenge respondents will receive a free copy of a new book from SAP Press.

And be sure to check back here all this month -- we'll be posting solutions from experts and readers as we receive them.

From industry expert Steve Phillips:

Unless your distribution center operations are decentralized across the globe, or one firm cannot provide the required coverage, I would not introduce unnecessary complexity by using multiple 3PLs.

This was last published in October 2011

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