ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Loss of Control
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Expansion Opportunity
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Efficiency
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None of the above
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Detailed explanation-1: -With 3PL providers, you are limited by what an outside company can offer. Even if the 3PL company has everything you need today, as your business grows and changes they might not be equipped to take on new demands that you have.
Detailed explanation-2: -Potential disadvantages to outsourcing logistics: Loss of control if not managed properly. Lack of communication/openness by one or both parties can lead to suboptimal operations. Poor 3PL selection can result in supply chain disruptions, high costs, and lowered service levels.
Detailed explanation-3: -These include cost savings on labor costs, increased efficiency in warehouse operations, and reduced inventory levels. Yet, there are also disadvantages, such as a higher risk of theft. Also, a lack of security personnel at warehouses causes higher risks. Less control over shipping schedules is also a problem.