SHANGHAI REALHONG INTERNATIONAL LOGISTICS CO., LTD.

Third-party logistics, also known as outsourcing logistics or contract logistics, refers to the operation mode of logistics services completed by a third party other than the supplier and demander of logistics services.


Third-party logistics, also called 3pl companies is a form of logistics specialization under the social division of labor. From its operation content, it includes not only warehousing, transportation and electronic data exchange, but also ordering and automatic replenishment, selection of transportation means, packaging and labeling, product grouping.


The scope of third-party logistics includes external procurement of any kind of logistics services, such as traditional procurement of transportation and warehousing services on a transaction basis, and purchases of non-traditional logistics services.


But strictly speaking, third-party logistics refers to the procurement of multiple logistics activities, the procurement of multiple or integrated services, such as the procurement of planning, control and implementation processes, which usually involve long-term business relationships.


The basic value-added of third-party logistics comes from management information and knowledge, especially technical services such as EDI, information systems, and satellite communications. Therefore, enterprises must learn to use third-party logistics efficiently and with high quality.


1. Relationship management of third-party logistics


In the third-party logistics supplier management, enterprises must pay attention to supplier relationship management (SRM), break free from pure logistics management, try to establish and maintain long-term and close partnership with suppliers, jointly develop the market, and enhance the value of the supply chain.


(1) Material safety, 3pl must ensure material safety, that is, deliver the materials to the destination according to the quality and quantity, so as to avoid the loss of materials in the third-party logistics process.


(2) The service is stable. The third-party logistics must ensure the stability of the service and ensure that the logistics service can be provided according to the appointment at any time, especially to avoid the situation of out-of-order scheduling during the peak period.


2. Third-party logistics performance management


In the management of third-party logistics, performance management is the basic management method, and it is also the key way to promote the third-party logistics to be efficient and high-quality.


With the help of performance management, enterprises can guide 3pl enterprises to continuously improve according to the key indicators of third-party logistics and enterprise needs to suit the needs of supply chain development.


In order to give full play to the effectiveness of performance management, enterprises must understand the concept of "adaptation", so that performance management can be adapted to the enterprise logistics strategy and even the supply chain strategy.


3. How to understand the concept of "adaptation" of third-party logistics?


There are many different suppliers in a company's supply pool, some are efficient, some are cost-effective, and some are focused on quality.


Therefore, in the face of different suppliers, 3pl enterprises should also formulate different performance management schemes to achieve adaptation and ensure that the advantages of each supplier are brought into play.


It is difficult for companies to find suppliers who achieve the best in all indicators, but they can find suppliers who achieve the best in one or several indicators.


At this time, what enterprises need to do is not to make each supplier perfect, but to adapt suppliers with performance management and maximize the advantages of suppliers.


Only when performance management is coordinated with corporate strategy and supply chain, and is adapted to each supplier, can the performance management effect of the enterprise reach the extreme, and can it play a role in promoting third-party logistics and supply to be efficient and high-quality.