How Third Party Logistics Providers Serve as an Extension of a Retail Operation
Many, if not most retail operations should rely on 3rd party logistics providers to help keep business moving as smoothly as possible. This outsourcing allows shippers to focus on their core activities while entrusting transport, warehousing, customs, and other similar activities to 3rd party specialists able provide such services. In the USA, the use of 3rd party logistics providers by both large and small businesses has increased over time. The gross revenues of the US 3rd party logistics industry has significantly increased from 1996 to 2008.
SOURCE: U.S. Department of Transportation, Research and Innovative Technology Administration, Bureau of Transportation Statistics, based on data from Armstrong & Associates, Inc. 2009. U.S. and Global Third-Party Logistics Market Analysis. Available at http://3plogistics.com/PR_3PL_Financial-2009.htm as of Nov. 1, 2009.
http://www.bts.gov/publications/freight_transportation/html/figure_12.html
Third party logistics providers specialize in:
- Finding the correct shipping terms
- Managing stock
- Storing products
- Ensuring orders are processed properly and dispatched on schedule
- Managing inventory for retailers through warehouse systems
- Providing timely reports for inventory levels
- Keeping items secure until time of sale
- Assisting retailers looking into overseas markets
Getting quality products, negotiating fair pricing, and then marketing products for sale is a full time job. You should not have to worry about shipping, air freight, protecting goods in transit, and ensuring arrival time—rely on third party logistics to keep your business moving smoothly.
Logistics firms specialize in cargo container shipping and outsourced freight shipping, providing professional outsourced freight shipping services, and are referred to as 3rd party logistics suppliers. Third party logistics providers dedicate themselves to integrated logistics warehousing and transportation logistics management, serving as an extension of a retail operation. Third party logistics providers can customize their services to client needs and specialize in providing services for companies who sell large and heavy items, particularly companies offering large equipment.
As a retailer, you may be interested into marketing goods overseas. Your logistics service can handle international shipping rules and laws. Getting a product in one country may be simple compared to selling to another. Your 3rd party logistics company understands that retailers don’t have time to stay up- to-date on regulations for multiple countries and can use their experience to make international expansion simple.
3rd party logistic providers concentrate on supply chain development and work with companies to enhance point-to-point shipping. Logistics firms ensure supply chain management and transportation logistics. These providers specialize in understanding international freight markets and can help your company better utilize their services and develop strategies in accordance with long term goals and market structure.
Transportation rate analysis and frequent re-checks are performed to achieve economies of scale—these analyze current rates and capitalize on discounts and seasonal offers. In the event supply chain management has to be done in remote areas, logistics firms specialize in finding the nearest area for effective supply chain logistics management. They also help trace shipments and retrieve information about delivery practices.
Should you wish to learn more about Spectrum Logistics and third party logistics solutions, don’t hesitate to give us a call locally at 904-714-9355 or toll-free 1-800-745-1225.
Weather Watch
Hurricane Watch
