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The advantages of using3PL is to improve economies of scale (merits from large truck fleets, warehouses, And focused on core competencies etc.) and economies of scope that encourage firms to increase net value by reducing costs But effects of these economies vary depending on whether the3PL provider is an “asset-type” or “non-asset type” provider.
Competent3PL providers are skilled at coordination, enabling them as a sub-contractors and efficiently manage the inter-firm flow of goods is seen benefited in current scenario. So now a day’s3 PL has become vital aspect in Supply chain management.
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