If an organisation has to have third-party logistics providers then the organisation should not overlook the aspects stated below.

• Loss of Control -This is the single biggest disadvantage. Where there may be a certain comfort level to servicing your customer when logistics is in-house, that feeling is gone when you outsource to a third-party.
• Higher Exit Barriers -It is very difficult to reverse the decision to outsource once your organization has signed up with a third-party provider. Contracts are usually 2-5 years in length with penalty clauses for early termination.
• Unexpected Fees -Unless explicitly stated in the contract, extra usage fees may apply. This is dependent on the type of contract that is used, open-book or closed book. In open book, all costs are visible to both parties and a management fee is applied for the 3PL service. In closed-book a cost per piece is charged, so as the volume handled increases, the cost increases.