Third party logistics companies provide logistics services for their client for part, or all of their supply chain management functions. Most of the providers have combined operation like warehousing and transportation services which can be customized according to their customers’ needs.
Customers’ need and market conditions often set the specialty of the provider. If you think about the entire supply chain operation, starting from manufacturing, to packaging, labeling, transportation, warehousing and distribution, there are a lot of steps, requirements and demands involved. Companies may choose to outsource any of these steps of the supply chain to a third-party logistics provider. Outsourcing services to providers may help cut transportation costs, reduce inventory, improve business processes, technology strategy and integration, manage supply level and improve customer service.
We even see today some experienced import and export companies providing some of their services to other companies because of their well established infrastructure and technology.
There are 4 types of 3PL providers and each of them specializes in different services: [Read more...]