In this era of high cost and marginal profit, the outsourcing of logistics adds value and provides business opportunities to a corporation through market planning that incorporate logistics strategies that matches the goals of the corporation and through an integrated marketing-logistics approach, giving the corporation a competitive edge.
There are three generic competitive strategies according to Porter (1980): cost, focus, and differentiation. More than cutting back on cost, logistics make it easier for the corporate to concentrate on improving core abilities by creating differentiation of product or services.
  • The corporate can focus on core business without worrying too much about the transportation and warehousing of products.
  • 3PL is experienced in logistics and is capable of more professional services.
  • The professional logistics services of 3PL minimize cost from logistical troubles.
  • Cost for setting up a logistics department spared, capital turnover rate raised.
  • Logisticians are much more likely to be produced by 3PL than by the corporate.
  • Logistics provides routes to market for the competitiveness of the corporate.
  • Specialization promotes efficiency.
  • Logistics center is a good way to build up a cooperation network.