Outsourcing can be advantageous for both the company wishing to outsource, and the company contracted to do the outsourcing. It is more than just delivery or logistics, however, this is where the most benefits can initially be seen. First, let's discuss the advantages to the initiating company: Using a 3PL or third-party logistics company can reduce cost of transportation of both the raw materials and finished products. Using the outsourced company's technology and experience reduces cost, time, and infrastructure strains on the originating company. Flexibility: with upturns or downturns in the market or changes in supply and demand, the originating company can take advantage of finding new 3PLs or expanding with their current choice depending on the needs including change in location, increased warehousing needs, decreased warehousing needs, or type of warehousing (ie: refrigerated vs. regular). Building relationships with established 3PLs. The reputation and long-term experience of many of the established logistics-focused companies provide security and dependability that is essential to both the supplier and the consumer. Specialization: Especially in the case of Dannon in our reading, Dannon outsourced their refrigerated needs for warehousing storage and delivery, only having deliveries for the daily production from nearby facilities to their manufacturing