Most people do not really grasp the concept of 7pl, what 7pl services entail or how it works. before we offer an examples, we would like to point out that 7PL services are not for everybody to use. That does not mean you can’t work with 7pl companies; they are also 3pl companies and can deliver the solutions needed.

How do 7pl companies work ?

We are offering an example of how a 7pl company can work for you. This is an actual company working with a 7Pl company.

A manufacturer of Hammocks from Germany wants to enter the US market and South America’s Markets as soon as possible in order not to lose the time advantage. The Manufacturer has no intention of establishing physical presence in the USA due to high cost. They off course, have complied with all legal requirements to operate a business in the USA.

The manufacturer locates one of the most reputable Logistics companies in Miami , 7Pl Logistics. an agreement is reached and the business activities start.

1. 7Pl Logistics picks up several containers from Hamburg Germany and ships as ocean freight to Miami
2. Cargo arrives, Miami port, clears customs and containers are brought to Miami warehouse of 7PL.
3. Product is counted, verified and put away.
4. Both 7Pllogistics and manufacturer use sap business 1 SOFTWARE as required by manufacturer. All warehouse receipts, orders, invoices, etc are handled by SAP business. Manufacturer set up 7PL logistics to have access to the system to use.
5. Orders come in to ship hammocks from Germany (E-commerce) or local sales reps. 7pl generates pick tickets, send to warehouse, order is packed and shipped to end user. Packages could be shipped via courier, LTL trucking or  International air freight to other countries. Tracking Number is updated in the system.
6. Invoices are issues ant sent to customers.
7. Customer sends payment to manufacturer to the address of 7Pl Logistics. Payment is posted in the system by 7pl staff. Checks are deposited to manufacturers account in the USA.

In addition to above, 7PL logistics provides office space for the sales staff of the manufacturer to help with their sales efforts. The above was a simplified version of the services provided.

To Summarize: The 3PL company in Miami has become an extension of the company in Germany almost like another location which leads to the understanding of the concept of 7PL Logistics, One Contract One Bill.

Services offered by 7PL Companies in this case.

1- Ocean freight Services

2- Customs clearance

3- Drayage from port to warehouse

4- Warehousing services

5- Order fulfillment Services

6-Accounting support services, billing and collections

7- International Air freight Services

8- Inland Transportation

9- Courier services

10- Packaging Services

The collection of above services above when offered by 3pl companies help identify them as 7pl companies.

In recent years many International companies have adopted above described business model in order to gain access to new markets quickly and efficiently reduce the overall start up cost.

Resources

Logistics Companies in Miami

Contract logistics

Best 3PL Companies in Miami

Miami Freight Forwarders

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Importers are buying their products from more than one country. As an importer, you would like to work with with one company to handle your imports from different countries. This is easier said than done as most Freight Forwarders , do not have representations in all countries. This put pressure on International freight forwarders  to expand their reach to new markets. This expansion was fueled by the increase in demand for new products by e-Commerce companies offering a wide variety of products.

As logistics companies realized the need for  Fulfillment services , expanded their services to order fulfillment  by promoting  3PL Services  to their clients.

As more importers look to streamline the process, they search for  3pl companies that can work with their vendors overseas. Logistics companies responded by adding  Contract Logistics services to their list of growing services.

Now Importers wanted a company to handle their fulfillment and finance their inventory at the same time.  4Pl companies  came to the rescue.

As the demand for goods continues to grow, logistics companies respond by adding new services.

Resources

Contract Logistics

7pl Companies

3PL Companies in Florida

Miami Freight Forwarders

The post International Logistics appeared first on Bolivia Export.

We combine intercontinental freight services with comprehensive Value-Added Logistics Services and Supply Chain Services. The range of Supply Chain Solutions can vary from simple transport or storage up to complex operations.

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4PL Companies can be defined as the integrators that utilize their own human resources, technical capabilities, expertise, and technology solutions, and leverage those of other organizations, like third party logistics providers, to design and manage supply chains on behalf of clients.

4PL Companies can provide all the functions of a 3PL (procurement, storage and distribution and processes for each) as well as the ability to provide a customer with the outsourced financial, customer services and computer systems to support commerce.

Logistics outsourcing  can enable workforce reduction, freedom from restrictive labor environments, logistics management and technology issues, expanded geographic coverage, operational flexibility, reduced cycle times, improved responsiveness and cost reduction.

The percentage of logistics and manufacturing activity provided through Contract Manufacturers (CMs) and Logistics Service Providers (LSPs) is on the rise.
With many more companies evaluating the viability and the benefits of outsourcing relationships, it is increasingly important to know just what you’re getting into with an outsourcing relationship.

During its life cycle, the outsourcing relationships will form, adjust and reform. All parties involved must plan for this evolution and the changes it will bring.

These days many International freight forwarders are evolving and adopting new technology and strategies to become logistics service providers.

We have been witnessing this evolution over the past 20 years with so many large freight forwarding companies that have started offering 3PL and 4PL Services.

The term 4PL Companies itself is still unclear. Most people still confuse the terms with 3Pl Companies, freight forwarders and even shipping companies. Just think of 4pl Companies as your logistics consultants helping you manage all your 3pl providers.

3Pl Companies offer services such as ocean freight shipping, warehousing and Distribution, Pick and Pack Services, Import freight Services. 4PL Companies work with their clients to coordinate all of these services.

Other Resources:

International Freight Forwarding
Freight Forwarding Services
Consolidation Services
Ocean Freight Services
Air Freight Services
Miami Freight Forwarders

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The growth of 3PL companies has been driven by the need for businesses to become leaner, more efficient reducing assets and allowing focus on core business processes.

Selecting A Third Party Logistics Provider

Deciding to a use a third party logistics company is a decision that depends on a many of factors that differ from business to business and from location to location. The decision to outsource certain business functions will depend on the company’s plans; future objectives, product lines, expansion, acquisitions, etc.

Once a decision has been made to outsource certain processes then a company will begin a search for the right 3PL that fits all their requirements at the best possible price. There are three types of Third Party Logistics Providers or companies that operate today.

• Asset Based
• Management Based
• Integrated Providers

Asset based third party logistics companies use their own trucks, warehouses and personnel to operate their business. Management based companies provide the technological and managerial functions to operate the logistics functions of their clients, but do so using the assets of other companies and do not necessarily own any assets. The third category, Integrated Providers, can either be asset based or management based companies that supplement their services with whatever services are needed by their clients.

When selecting a 3PL, the request for information (RFI) or quotation (RFQ) should be as detailed as possible. The company that is selected should be able to fulfill all the logistics requirements and that can only be assured if every requirement is communicated to potential companies. The RFI should include a detailed description of the areas to be outsourced. This will usually include:

• The scope of the contract, including locations, facilities, departments.
• Information on volumes involved; number of deliveries, warehouse sizes, number of items, etc.
• The logistics tasks are to be performed, e.g. warehousing, transportation, etc.
• The level of performance required.

After the bids have been received by a company from the prospective third party logistics providers, an evaluation would take place where a multi-discipline team will review each bid based on a pre-defined set of criteria. These will include some of the following.

• Does the 3PL provide the services required?
• Does the 3PL have the technology required to perform the tasks required?
• Does the company have the required warehouse space, dock capacity, warehouse personnel, etc.?
• Is the 3PL financially sound?
• Are the 3PL’s geographical locations suitable to cover the network?
• Does the 3PL have the flexibility to respond to changes?
• Are the 3PL’s environmental policies compatible?
• Are the costs of the services detailed enough for comparison to other bids?
• Are the customer references acceptable?
• Is the 3PL a good cultural fit?

With a large volume of shipments going through Miami, Miami Freight Forwarders have moved to becoming third party logistics providers

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