One aspect of the supply chain which is often under-appreciated is logistics.
For the right product to move from point A to get to the right customer at point B at the appropriate time is the duty of effective logistics processes. It is, therefore, crucial for every business that produces products for their customers or other businesses to take care of the issue of logistics and supply chain efficiently.
Companies that ship products to their consumers are also customers to other companies who supply them with raw materials. There are billions of dollars in products being shipped every day to meet the needs of businesses and the economy. In the last few decades, the cost of energy among others continues to put pressure on many companies’ budgets, especially with logistics.
The economic dynamics and developments in technology during the same period have generated a new attention to the way the supply chain functions. Generally, logistics needs a whole new level of attention and discipline.
It is a real challenge for many businesses to stay on top of their core business operations while still maintaining a very effective logistics end of its operations. The need for improvements as far as logistics goes then becomes vital.
This is where the role of 3rd party logistics services cannot be over- emphasized in bringing efficiency to business operations that produce measurable outcomes. In most cases, businesses gain immensely when the logistics end of its operations are outsourced to 3rd party logistics service providers.
3rd party logistics service providers have the necessary technology and they employ only the best practices in their operations, offering real-time status and monitoring details to their customers, This ensures that businesses get to focus on their core business as issues relating to shipping and warehousing are taken care of on their behalf.
Practically, 3rd party logistics service providers can and do contribute to companies’ bottom line. The introduction of professionalism, discipline and educated approach towards logistics ensures much efficiency in the areas of inventory, management of transportations and warehousing, materials and supplier management, as well as all aspects of the supply chain of a company.
As a basic principle, 3rd party logistics service providers depend on lean logistics to maximize the benefits of outsourcing. The practice of outsourcing logistics to 3rd party logistics service providers is becoming increasingly popular among many companies, both big and small.
In selecting the right outsourcing options, consideration should be made based on the operating philosophy of the vendor, their supply chain experience, and success history.