What Are the Characteristics of Third-party Logistics?

What Are the Characteristics of Third-party Logistics?

2022-11-25 13:47:53

1. Third-party logistics is based on modern electronic information technology


The development of information technology is a necessary condition for the emergence of third-party logistics. Information technology realizes the rapid and accurate transmission of data, and improves the automation level of warehouse management, loading and unloading transportation, purchasing, ordering, distribution and shipping, and order processing. To integrate ordering, packaging, storage, transportation, circulation, and processing; companies can use information technology to communicate and collaborate with logistics companies more conveniently, and coordination and cooperation between companies may be completed quickly in a short time.


2. Third-party logistics is a series of contract-oriented services


Third-party logistics is different from traditional outsourcing. Outsourcing is limited to one or a series of decentralized logistics functions. For example, international transportation company provides transportation services and warehousing companies provide warehousing services. Third-party logistics is based on contract terms rather than according to the requirements of temporary needs, to provide multi-functional and even all-round logistics services.


Third-party logistics is a personalized logistics service. The objects of third-party logistics services are generally small, only one or a few, but the service time is longer, often as long as several years. This is because the business process of the demand side is different, and the logistics and information flow flow with the value stream. Therefore, third-party logistics services are required to be customized according to the customer's business process.


3. Third-party logistics is a way of trading


Third-party logistics is a transaction method of logistics services. It refers to a transaction method in which industrial and commercial enterprises transfer part or all of the logistics business to the operation of professional logistics companies. Professional logistics companies engaged in this transaction method are called third party logistics company. Under normal circumstances, people often refer to third-party logistics companies as third-party logistics for short, but the two are two different concepts with essential differences. The third-party logistics company refers to the organizational form of the enterprise, and the other refers to the transaction method of logistics services.

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