The characteristics and benefits of third-party logistic companies using activity based costing

Logistics is the most preferred department using outsourcing applications. The companies using outsourcing applications are able to concentrate on their basic skills and they can obtain competitive leadership by having advantages such as cost leadership.Third-Party Logistic (3PL) companies are specialized in logistic applications and they operate in this field. These companies need to plan their services and customers properly meeting the needs of the companies demanding logistic services. In this respect, 3PL companies should either prefer standard services coming into prominence with their providing benefits to all their customers equally (i.e. value creation) or focus on a limited group of customers providing more developed and customer-oriented services. Within this period, the effect of fiscal profits gained especially from alternatives. Therefore, they want to know of the most profitable price level for service prices. Identifying this level, the data of costing is the prominent factor. So, companies need to determine the most proper costing method providing the costing data and right decision makingKeywords: Logistics, Third Party Logistics, Activity Based Costing, Logistics Activities, Logistics Costs