How does a third party logistics company enter your supply chain? Many shippers will ask this question, the answer will be very obvious! The third party logistics can help you to deliver the goods from the country of origin to the warehouse and then to deliver to the final destination and also to return the goods. Therefore, it could save your time to focus on your business rather than the logistics matters. There are three steps for third party logistics companies to enter the supply chain.
Ⅰ. The first step for third party logistics companies to enter the supply chain
Let's start from the first beginning if you want to know where do third party logistics companies enter the supply chain. Where did you manufacture your products? If they are manufactured in overseas, then your process will start from the port of entry, you will need to transport the goods from the port to your facility or store the goods before distribution. If your products are manufactured inside your country, then you have to make sure whether the goods are ready to load and transport at the time of manufacture, or whether you need the goods pick-up, packing and storage service. In general, all the services except manufacturing can and should be outsourced in order to increase efficiency and save cost.
Ⅱ. The second step for third party logistics companies to enter the supply chain
Continuing through the supply chain, the goods are now ready for distribution. There will be a short storage period for most of the goods before the final transportation, the space is the very precious commodity in manufacturing factories. The third party logistics can provide flexibility for the required warehouse space, it also can prepare for cross-docking or seasonal rise.
Ⅲ. The third step for third party logistics companies to enter the supply chain
Finally, the goods are ready for the shipment! The third party logistics companies can provide the solution for your supply chain, whether the shipment is the set of logistics or in specific packing, whcih ensures smooth customs clearance. In addition, you will have wide selections of carriers to make sure you will use the most efficient way to ship the goods. The total volume of third party logistics will ensure the price of full carload, less-than-carload freight(LTL) or small parcel transport are very competitive. In addition, the third party logistics companies can also provide the recommendation for pattern optimization and use the number of other customers for centralized distribution. This provides shippers with the options that they cannot negotiate on their own.
All the steps above can be managed by your third party logistics companies, you can get them involve either in one service or all services. No matter which step the third party logistics enters the supple chain, it will always add value, improve efficiency and save the cost. In the end, the third party logistics can reduce your risk and make the flexibility to manage your supply chain without additional funds. You can invest in your core business to generate higher rates of return by selecting the third party logistics companies.