1. I will use the same 3PL that is used by my prime competitor if I am operating a start-up company. Generally, 3PLs provide services including transportation, consolidation, warehousing, and so on. It is so important in any logistic management that choosing a good 3PL company is choosing a working partner. My prime competitor using this company infers that it has good performance and its service meets the industry's requirements. So following my competitor's step saves my cost and time in finding and evaluating a new company.

Through cooperation, I will limit the services. Since my competitor has longer cooperation with the 3PL company than I do, my competitor can get a discount for the same service. For example, the saving in transportation costs will finally convert to a pricing advantage, which increases its competitiveness among customers. So I seek differentiation by limiting its service. For example, I may build my own fleet, which greatly increases transportation flexibility and controls inbound and outbound costs by myself.

2. No, I would not allow 3PLs to be involved in my strategic planning. We are two different companies having our own business policies. Letting it be involved has so many uncertainties and may be out of control. Besides, I choose to use 3PLs at present because I cannot predict requirements for space and labor or there are volume fluctuations. I consider 3PLs as a variable cost, greatly related to revenue. But, when my company has a stable and predictable revenue in the near future, I prefer to build my own logistics infrastructure.

3. Yes, I would allow 3PLs involved in managing logistics operations. First, logistics is an important intermediate link connecting manufacturing and retailing. Letting 3PL be involved can increase the communication efficiency between departments and cut unnecessary communication between 3PL and the logistic department. Meanwhile, a 3PL service provider has knowledge and experience in matters such as transport documentation, import and export, and economic regulations, it can give advices during operations.

There are also limitations that a 3PL company will always take its own profit as a priority. If there is a time or space conflict between me and other companies, it will sacrifice my interests to maximize its individual benefits. Worse still, I may not notice it if it is involved in logistic operations.

Do you agree with the paragraph above? If yes then why?