It is becoming very difficult for a single company to perform every process and activity required to bring its product or service to market in a competitive manner. Consequently, we are observing a dramatic paradigm shift, with companies moving from performing all activities in-house to selective outsourcing for non-core elements of their business. Through outsourcing, companies can focus on their core competencies, reduce costs, improve quality and increase flexibility. Companies today can no longer afford to ignore the potential opportunities realized through mutually beneficial outsourcing relationships with third-party suppliers. The outsourcing opportunities exist in almost every business process. Many successful companies have implemented effective outsourcing relationships with third party suppliers to gain competitive advantage in a wide range of areas. However, in terms of logistics, it is not so easy to find those companies in our country. Consequently, this paper reviews previous researches and describes several topics in third party logistics such as advantages and disadvantages, how can we select third party suppliers, and so on.