By aggregating capacity, inventory, inbound or outbound transportation, warehousing, procurement, information, receivables to higher level, outsourcing to a third party can provide a sustainable growth of the surplus to the firm. Sometimes, a growth in surplus may also occur due to lower cost, higher quality, specialization or learning of the third party. A firm gains most from outsourcing to a third party if needs are small, uncertainty is high and other firms are also sourcing from the same third party.Sayeed, M. (2013) Sourcing Decisions and Third Party Supply Chain Management Service Providers, 4 July [Online]. Available at: http://schain24.blogspot.co.uk/2013/07/sourcing-decisions-and-third-party.html (Accessed: 24 October 2014)
