Return on assets: By reducing the not-insignificant investments, profits can improve significantly through outsourcing.
Personnel productivity: By concentrating on the core business, it is possible to enhance the productivity of employees.
Flexibility: The use of a service provider divides the risk and reduces the losses from changing market demands or outdated facilities and equipment.
Labor considerations: Delicate labor union issues of day-to-day can be avoided, though employees need to deal with employee dissatisfaction arising from outsourcing.
Management and Political considerations: Outsourcing eases managing the basic business since the logistics and most distribution problems are dealt with by service providers.
Information technology: The ever-increasing demand for new technologies and resources often can be met more efficiently and economically.
Maturity of the Service providers: In today’s world, an integrated logistics service provider is a dynamic firm, with highly qualified employees and utilizes a winning combination of efficient techniques.