Third Party Logistics Companies

2008-06-09 11:58:16

( Legal )



The Logistics Function of Business

Manufacturing and merchandising firms need to perform logistics functions to order supplies and raw materials from other firms, or to process orders and deliver merchandise to stores or directly to customers.

Logistics in itself is a highly complicated set of processes which involves order taking, materials handling, storage maintenance, and delivery scheduling. Ultimately, your goal is to maintain an optimal and efficient blend of all logistics activities so that you will not experience short supply of raw materials or glitches in transport dispatching that would cause delays in delivery of orders.

Running an efficient logistics system is also quite expensive, as you need a lot of resources including manpower, support software, transportation vehicles and storage facilities. The problem gets complicated when you have commitments to deliver goods across the country or worldwide.

Third Party Logistics Companies Bridge the Gap between Cost and Profits

Just as there are third party software providers and third party shipping agencies, there are also third party logistics companies that offer a variety of services.

Your company can save a lot of bucks as well as effort in having to maintain a logistics department by simply outsourcing your logistics needs with third party providers. You don't have to maintain branches or offices in other cities just so you can deliver your products to customers and stores in those areas.

Third party logistics companies can provide for all phases of your supply chain management needs, from order processing to merchandise pick-up and delivery. They can also maintain warehouse facilities for temporary storage of your goods until these are ready to be delivered. These are the most basic functions of third party logistics companies.

Other Services from Third Party Logistics Companies

If you prefer, you can even arrange for other services from third party logistics companies, such as order tracking and packaging of your merchandise.

Some third party logistics companies can also perform part of the marketing function by maintaining close contact with customers and resellers of your product. As such, they can promote your products on your behalf.

They can also perform payment collections and auditing of shipments. In fact, you can practically customize your arrangements with third party logistics companies for your own benefit.


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