Reducing overall costs, but it must be a joint effort. Need for expertise not available in house. Realization that the 4th party logistics provider can handle your products as good or better that you can and can solicit, configure and manage the best supply chain strategy that's most suitable for you, the customer. 4th party providers can excel in specific service to a specific internal department. Allows companies to focus on their core competencies.
Company lacks the necessary skill set to drive change.