Using examples, explain reasons why third-party logistics arrangements are not always successful?

When companies experience growth, they often run into challenges meeting the demand of their supply chains. On the opposite end of the spectrum, large companies need more time to focus on their core competencies. Whether it’s assembly needs, inventory management and storage, contract packaging, or shipping, most companies can benefit from having some additional help.

This is where a third party logistics (3PL) provider comes in handy.

3PL providers offer custom solutions that meet your specific needs for assembly, packaging, warehousing, and onsite integration. A good 3PL provider has thorough knowledge in logistics and an array of resources to help identify and fill in any noticeable gaps that a company might have.

Depending on what your specific needs and goals are, 3PL providers can offer a variety of benefits.

1- Unreasonable and unrealistic expectations, generally from the user’s perspective; for example, it might be unrealistic (and unreasonable) for a customer to expect a3PL provider to cut the user’s annual transportation expenditures by percent.2 Involves a lack of flexibility. Regardless of how thoroughly the provider and customer have prepared for a3PL arrangement, unexpected issues and challenges are bound to arise