The outsourcing in logistics industry is firmly believed to be an essential component as a tool of domestic logistics companies to survive in the very competitive global market. This fact can put a necessity in the improvement of domestic 3PL. Therefore, the research has intended to provide the viable solution for current issues of 3PL industry in Republic of Korea.
This research categorized the present 3PL’s issues into 4 factors in order to analyze local 3PL situation. Then, researcher comes to a conclusion that the development of 2PL is the best solution to settle down the recent problems in Republic of Korean logistics industry.
Considering the circumstance that any strong points in Republic of Korean 3PL can not be easily realized, Republic of Korean government would better promote 2PL logistics which can be supported financially and systematically. In an effort to build the efficient logistics infrastructure and to enhance the better logistics environment, the researcher insists that Republic of Korean Government should deregulate against 2PL logistics companies and let them create the logistics competitiveness which can be competent in the fierce global market.
Furthermore, shippers and logistics companies must set up the understand that they are both cooperative partners the shippers should try to establish the most effective logistics system to allow the accurate production forecasting and distribution time, so that logistics companies are able to increase the service level. In addition, shippers need to secure long terms contract with logistics companies which make an effort to renovate their capability to get out of a price war and compete with the quality of logistics systems. This renovation must accompany with IT development and well-organized global networks in logistics industry. In this ground, Government should generate a friendly logistics environment for any competent 2PL companies backed by full financial supports and technical systems, to grow capable 3PL and 4PL companies which are able to stand comparison with the huge global logistics companies.