**8. Disadvantages**

Third party logistics sounds like a slam dunk, does not it? Well, before you sign on the dotted line with your friendly, local 3PL rep, let us look at both sides of the equation. One major disadvantage of using 3PL is that it leads to some loss of control over your shipping functions. This business strategy puts a third party in control of one of the business functions with the most impact on customers and the greatest effect on customer satisfaction. In addition, turning these functions over to a 3PL firm is a major commitment, since your in-house logistical team may lose much of the relevant market knowledge that you will need should the relationship with your 3PL provider ever become untenable. Bringing the shipping function back in-house could prove difficult when this institutional knowledge is lost. The cost factor is not crystal clear either. A 3PL firm may be cheaper up front, but over time, it will likely be more expensive than handling the shipping functions inhouse, provided those in-house functions are operating efficiently.

#### **8.1 Loss of control**

One drawback is the loss of control a customer hosts by utilizing third gathering coordination. With outbound coordination, the 3PL supplier for the most part accepts correspondence and cooperates with a company's client or provider. To alleviate this, some 3PLs endeavor to mark themselves as their customers, for example, applying customers' logos on their advantages and dressing their representatives like their customers' employees [115].

### **9. Conclusion**

Third-party logistics was propelled to bear the weight of obligations from various organizations. At first, it had distinctive jobs to perform, yet its prosperity and viability supported worldwide organizations as well as it lifted the measures and productivity of various organizations in the aggressive market. Lead coordination suppliers however do not have quite a bit of their benefits yet their skill in the

**57**

**Author details**

*Third-Party Logistics*

*DOI: http://dx.doi.org/10.5772/intechopen.86922*

best element for questioning outsider coordination.

Yangyan Shi\*, Rafay Waseem and Hafiz Muhammad Shahid

\*Address all correspondence to: peter.shi@mq.edu.au

provided the original work is properly cited.

and Management, Nanjing Agricultural University, Nanjing, China

Department of Economics and Management, College of Agricultural Economics

© 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

field makes them champion. They have low overhead costs, great correspondence, and compelling investigation with their solid system framework. Their proficiency and affectivity in their fields are strikingly extraordinary because of their group's potential. At the point when outsider coordination is contrasted and second gathering coordination, it demonstrates the distinction unmistakably. Second gathering coordination does not have an incorporated framework and edge work for their dealings and administration giving assignments. The outstanding task at hand of outsider coordination is very high as they oblige future objectives and undertakings. In addition, there have been diverse ways to deal with and think about the viability of outsider coordination, yet none of the proposed model or procedure suits the
