Impact of 3PL Outsourcing on Supply Chain Management in Manufacturing Companies in Norway: Case Study Norsk Hydro

Abstract

3PL outsourcing is a practice in which a company outsources its logistics and supply chain management functions to a third-party logistics provider. By outsourcing logistics activities to a 3PL provider with advanced technology solutions, organizations can improve their supply chain management and achieve greater efficiency and effectiveness. Supply chain management is the coordination and management of all activities involved in the production and delivery of goods and services from raw materials to end customers. It includes activities like procurement, production, transportation, warehousing, and distribution. The research used the descriptive research design. The target population was 30 Manufacturing Companies in Norway.  The research did sampling of 40 participants that were chosen from the target population of 30 Manufacturing Companies in Norway. Questionnaires were utilized to gather the data. The study concluded that the partnership between manufacturers and 3PL providers has become increasingly critical in Norway's competitive manufacturing industry. This collaboration helps to streamline processes, enhance visibility, and optimize inventory management, leading to greater supply chain performance.  To ensure successful outsourcing, it is essential to conduct a thorough analysis of the supply chain, identify the right 3PL provider, establish clear communication and collaboration, develop a performance monitoring system, and regularly review and assess the outsourcing arrangement. It was recommended that before deciding on whether to outsource logistics functions to a 3PL provider, it is crucial to conduct an in-depth analysis of the current supply chain to identify areas that need improvement. The manufacturing company should establish a clear communication plan with the 3PL provider, outlining expectations, key performance indicators (KPIs), and regular reporting requirements. Effective communication and collaboration are crucial to the success of 3PL outsourcing. Keywords: 3PL Outsourcing, Supply Chain Management, Manufacturing Companies, Norway