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While cost reduction remains one of the most popular motivations for outsourcing, a desire to be more strategic and focus more on value-adding in-house activities is becoming increasingly important. To streamline their business model and/or handle sudden increases in business during peak seasons, many Hong Kong merchants and trading companies have outsourced their warehousing, pick-and-pack, assembly, and fulfillment activities to third-party logistics (3PL) organizations. Recently, there has been an increase in the number of 3PL companies joining logistics groups.

Question:

Identify and explain SEVEN key success factors of the logistics outsourcing procedures. (must be 560words)