Question:3PL providers sound a lot better than private warehouse. Yet, why is it that some companies still insist in building their own private warehouse?
Answer:
Although the 3pls sound better than private warehouse,the company have to pay money for all the service that mean when the company store or acquire the service more,they have to pay more.
However some companies such as manufacturing or chain stores that need to store a lot of equipment, prefer to use private warehouse because they can reduce the expense in long term although the start up cost is high which can lead to low profit even lost in short term.
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