With the development of information technology and the trend of economic globalization, more and more products are circulated, produced, sold, and consumed in the world, and the logistics activities are becoming increasingly large and complex, while the organization and operation of first and second-party logistics can no longer fully meet the needs of society; in order to participate in worldwide competition, enterprises must establish core competitiveness, strengthen supply chain management, reduce logistics costs, and outsource logistics activities that do not belong to the core business. In order to participate in global competition, enterprises must establish core competitiveness, strengthen supply chain management, reduce logistics costs, and outsource logistics activities that are not part of the core business. Thus, third-party logistics came into being.
Ⅰ. About the third party logistics
Third-party logistics is relative to the "first party" consignor and "second party" consignee as a kind of logistics operation and management mode. A third-party logistics enterprise will undertake enterprise logistics activities of a logistics firm. Third-party logistics neither belong to the first party nor the second party. Still, through the cooperation with the first party or the second party to provide its specialized logistics services, it does not own the goods, not involved in the sale and purchase of goods, but to provide customers with a contract for the binding, based on the alliance, series, personalized information-based logistics agency services.
Ⅱ. Why do you need third party logistics?
The emergence of third-party logistics caters to the changing requirements of professional cooperation (resource allocation) among enterprises in the era of individual demand. It realizes the integration of incoming and outgoing logistics, improves the quality of logistics services, strengthens the overall control and coordination of the supply chain, and promotes the overall optimality of the supply chain. So what third-party logistics services are there?
The most common third-party logistics services include the design of logistics system, EDI capability, report management, cargo consolidation, selection of carriers, freight forwarders, customs agents, information management, warehousing, consulting, freight payment, freight negotiation, etc.
We will get more high-quality and low-cost services from third-party logistics. The third-party logistics enterprises will invest more capital, manpower, and material resources into the core logistics business. Compared with integrated enterprises, third-party logistics services improve the utilization of the capacity of each link, achieve cost savings, and allow the division of labor to maximize the efficiency and effectiveness of collaboration. We can also minimize inventory, improve corporate cash flow and reduce costs through the third-party logistics provider with the help of well-planned logistics plans and just-in-time delivery means. And the perfect logistics network of third-party logistics greatly shortens the delivery time, invisibly enhances the enterprise's service to customers, and improves our own brand image.