Logistics is a process of controlling the flow of goods from the origin to an end point. Manufacturers of the goods are usually the point of origin, while an individual customer or business is the end point. Third party logistics offer value added solutions, such as assembly, packaging, storage, and distribution of goods to help you fulfill these logistics needs of your business. They are usually equipped to satisfy the needs of both small and big businesses and come with many advantages. Companies outsourcing supply chain management to an efficient third party logistics can benefit in many ways. Some of them are highlighted below:
Benefits of Third party logistics
Companies may decide to manage logistics on their own, however, nowadays many business or companies are utilizing third party logistics because of the following advantages:
- Resource Network: One big advantage is that they have access to a large resource network. Using this sizable resource network, management and execution of supply chain can be carried out in the most efficient and cost effective way. Third party logistic providers can help in strengthening relationships with their contacts and provide the fastest possible service. Additionally, using third party logistics, companies can avail of the resources, which are usually unavailable in-house.
- Save Money and Time: When it comes to supply chain management, finding a cost effective and time saving solution is one of the important things that we need to consider. Companies that use third party logistics solutions don't have to spend additional money on storage, shipment and other related functions. Also, there is no need to spend much time on invoicing, paperwork, audits, guiding and optimization associated with the transportation of your goods to the end point. All of these are taken care of by third party logistics within their proposed cost.
- Flexibility and Scalability: Third party logistics solutions are able to scale space, staffing, and various other aspects in accordance with the inventory needs. Scalability is beneficial for instances such as business expansion and seasonal periods. Businesses may have ups and downs, so you can utilise resources accordingly using third party logistics.
- Expertise: Third party logistics providers are professionals and follow the best industry practices for supply chain management. They use software that utilises advanced technology for reporting, warehousing and helps controlling and monitoring several aspects of the entire process. Outsourcing logistics takes off the burden and allows your company to concentrate on core competence. With the help of third party logistic services, you can make sure that your logistics needs are being managed and monitored by experienced and reliable professionals.
Third party logistics solutions are expanding rapidly and are becoming more and more popular and reliable. All in all, they have proved to be the value added solution for your logistics needs.