Third Party Logistics Companies

Third Party Logistics Companies

As international trade increases and supply chains expanding around the world, third party logistics companies have taken on an increasingly important role for international companies and retailers. Manufacturers need absolutely reliable sources of supply.
Retailers need flexible links to suppliers with low-cost production. These suppliers are often in remote regions. At the same time, retailers need rapid delivery channels for an ever-expanding distribution network of consumers. Simultaneously, burgeoning prosperity and intensifying competition for new markets is putting more and more pressure on supply-chain managers to get the job done and find competitive advantage.

The services that global 3PL Companies provide frequently include:

• Air Freight Forwarding (door to door)
• Ocean Freight Forwarding (door to door)
• Transportation Network Planning and Optimization
• Transport Execution/Freight Bill Payment
• Carrier Management
• Merge in Transit
• Security Systems and Control
• Incoterm Control – shifting from Ex works (EXW) to delivered duty paid (DDP)
• Letters of Credit/Negotiable Bills of Lading
• Cargo Insurance
• Consolidation/Deconsolidation/NVOCC Operations
• Systemwide Track & Trace/Internet Supply Chain Visibility
• Customs Brokerage and Licensing – Imports/Export/AMS/C-PAT
• Duty Drawback
• Value-Added Warehousing, Inventory Control and Supplier Management

Over the last few years nearly every company in Europe has been able to take some advantage of the free movement of goods across borders. This shift has been good for the large European 3PLs, but cultural differences still prevent centralization of operations at U.S. levels. Most 3PL operations in Europe still have to be designed on a country-by-country basis to be effective.

Why use Third Party Logistics Companies

  • Allows flexibility to expand and contract inventory levels
  • Enhanced technology and supply chain visibility
  • Improved customer service offerings
  • Allows companies to focus on core competencies
  • A more strategic and scientific approach to logistics challenges
  • Lower or eliminate capital expenditures associated with equipment and facilities.

Nowadays, there is a migration to 7PL Logistics .

7PL Logistics is a turnkey solution where instead of dealing with several people for various services like inbound, outbound and warehousing.

The concept is one contract, one bill.


Posted in 3PL.

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