| When you outsource your storage, handling and | | | | resources or to contract the services of a Houston |
| delivery functions of your company to a Houston | | | | public warehouse for a particular business requirement |
| 3PL, it does not necessarily mean that your company | | | | is made in manner which basically the same for both |
| is freed from all related aspects of these business | | | | a new business or not. Whenever limited equity is a |
| functions. For instance, the company will still have to | | | | major issue, the company may consider outsourcing |
| perform front line functions like receiving and | | | | the services of a 3PL company as an operating |
| processing customer inquiries on schedule of | | | | expenditure. For as long as the bottom line is within |
| deliveries. In this particular setup, you will have to get | | | | the acceptable norms for the company, this business |
| the information on delivery schedules from the third | | | | solution is acceptable. The outsourcing service will be |
| party service provider and again relay this delivery | | | | an expenditure category which will include all |
| updates to the customers making the inquiry. | | | | expenses related to warehousing operations, |
| However, you can also pursue an arrangement | | | | transport and handling cost, and distribution cost. |
| where the 3PL service provider will deal directly with | | | | Once your company decides to outsource all of |
| the customer as far as delivery inquiries are | | | | these essential operations, your direct participation will |
| concerned. Nonetheless, the company normally will | | | | only be up to the loading dock of the finished goods |
| retain the responsibility of handling all inquiries and | | | | in the production line. Beyond this point, no other |
| other related front line services in order to maintain | | | | essential resource of the company will be utilized |
| the feedback mechanism that is very essential for | | | | save for the staff who will coordinate with the third |
| customer satisfaction. It is also a way for the | | | | party logistics company for administrative and |
| company to monitor the day to day performance of | | | | customer service concerns. Whenever limited |
| the 3PL service provider. | | | | company funds are major issues or turnaround time |
| The logical question that may be raised is whether it | | | | is critical, contracting the logistical requirements to a |
| is cost effective for the company to handle both | | | | third party is the logical management option. |
| ends of the business spectrum. The company should | | | | Though you may still need to transport the finished |
| be able to allocate resources that will focus on the | | | | goods to the public warehouse, there are no further |
| processing of inquiries and getting delivery updates | | | | requirements from your company's end once this has |
| from the 3PL service provider. You also determine | | | | been done. You can assign a few of your staff to do |
| the amount of inquiries that you are normally | | | | this linking function and this would definitely not |
| receiving in a particular time and how much effort | | | | require additional manpower and even capital |
| that you have to spend to get across the | | | | equipment like delivery trucks as this can be provided |
| information to the 3PL company for their feedback. | | | | by the company. |
| The decision whether to use your own human | | | | |