SHANGHAI REALHONG INTERNATIONAL LOGISTICS CO., LTD.

In the face of fierce market competition, the main challenge for 3PL service companies is to provide customers with higher operational value than their own logistics operations. The functional importance of third-party logistics is generally generated from improving the efficiency of logistics operation, integration of customer operation, horizontal or vertical integration, development of customer operation, etc.


Ⅰ. The third party logistics can improve operational efficiency


The improvement of logistics operation efficiency means optimizing and upgrading each logistics link. For example, the operational efficiency of warehousing depends on adequate facilities, equipment, and skilled operational skills. First, the third party logistics companies should coordinate the continuous logistics activities; second, they also need strong coordination and communication skills.


Ⅱ. The third party logistics customer operation integration


Another way for third-party logistics companies to improve the value of their operations is to introduce multi-customer operations while developing new customers. The integration of existing customer resources, third party logistics companies on the integration of customer information is highly complex, requiring the continuous use of new information technology and skills; therefore, the integration of customer operations to show the economies of scale is incremental.


Ⅲ. Horizontal or vertical integration of the third party logistics


Customer operations are integrated mainly from the third party logistics services customer internal management optimization to talk about. In fact, from the perspective of third-party logistics service providers, they can also be integrated resources. Vertically, the third-party logistics company can develop the relationship with a single logistics function provider by purchasing its function operation or resources to gain cost and service advantages, which is also a way to create value. Logistics providers can focus on their own new capabilities of the service. Horizontally, the third party logistics company can join with similar but not competitive companies to serve customers To expand the field of services provided to customers.


By developing customer companies and organizing operations to create value, this 3PL service is close to the work done by logistics consulting companies in the traditional sense, with the difference that the solutions proposed at this time have to be developed and completed by the logistics provider itself. The driving force in value-added activities lies in the customer's own business processes, and the value-added can be seen as supply chain management and integration.