In House Logistics vs. Outsourced Logistics: Big & Small Brands Alike are Targeting 3PL Services

Outsourcing in the supply chain of logistics teams may sound farfetched. After all, outsourcing typically refers to sending jobs overseas. Yet in outsourced logistics simply refers to hiring a third-party logistics service, 3PL, to handle the logistics services. From securing inventory to transporting goods from Point A to Point B, 3PL are taking over as in-house logistics teams fall flat. Two of the most prominent businesses in the USA are following this movement—Target and Justin Brand.
It has been a frightening few years for Target investors. First the massive data breach in which thousands of American shoppers’ financial information was jeopardized. Then the Canadian expansion has been deemed a total failure, resulting in a loss of $5.4 billion. However, the company’s latest move might be the saving grace this globally recognized brand needs to survive.
According to Supply Chain 24/7, Target is taking a cost cutting plan to the extreme, setting the company to save $2 billion while increasing their supply chain capabilities. While Target has been utilizing outsourced logistics for some functions of the supply chain since 1997 via GENCO, as noted by Supply Chain Brain, corporate is now focused on streamlining the supply chain to provide more:
Target Corp. Rechannels Logistics

- Technology especially in the area of mobile and online sales channels
- User-centric capabilities that includes the localization of product lines based on demographics, location and climate
- Focus on the four most prominent categories—wellness, kids, baby and style—to take advantage of the areas that attract the most purchase potential based on shoppers’ demands
Justin Brands Boots Their In-House Logistics Department to Outsourced Logistics
Another leading brand taking the outsourced logistics lead is Justin Brands, a prominent Western style boot supplier with the brands of:- Justin Boots
- Tony Lama
- Nocona Boots
- Chippewa Boots
3PL Experts Expand Horizons for Companies
The main reason that using a 3PL service for a brand, big or small, is that outsourced logistics frees up a business to focus on what they know best. After all, unless a business is in the business of logistics, then it is not a forte that comes naturally. As organizations grow and expand the reality is that they are unable to keep up with the constant changes and evolutions of the logistics world. The same goes for the marketing sector and IT departments. While in-house departments were once sufficient to handle the tech, marketing and distribution needs of a company, the expansion created by globalization and the Internet has changed all of that. Benefits of a 3PL According to Supply Chain 24/7 the four main reasons why businesses are turning to 3PL are:- Overall cost for supply chain
- Flexibility and adaptability
- Capital investment and ongoing expansion needs
- Improvement of service levels due to a dedicated logistics provider