What Is 3PL Supply Chain Management?

Supply chain management is a factor that must be considered in e-commerce. The development of the Internet and the globalization of the market have made people from different countries and regions choose to shop on multiple platforms. To ensure the timeliness of shopping and meet the timely needs of consumers, supply chain management plays an irreplaceable role. Under the requirements of this era, 3PL appeared。

What Is Third Party Logistics (3PL)?

Third Party Logistics

Third-party logistics, also known as outsourcing (Logistics outsourcing) or contract logistics (Contract logistics), third-party logistics has always been the most misunderstood term in logistics and supply chain management.

Third-party logistics refers to an enterprise company with substantial assets that provide logistics-related services to other companies, such as transportation, warehousing, inventory management, order management, information integration, and value-added services, or cooperates with related logistics service providers to provide A professional logistics company with more complete services.

What Is Supply Chain Management?

Supply Chain Management

Supply chain management refers to the effective organization of suppliers, manufacturers, warehouses, distribution centers, and channel providers to minimize the cost of the entire supply chain system under the condition of satisfying a certain level of customer service. management methods for the manufacture, transshipment, distribution, and sale of products.

What Are The Features Of Effective Supply Chain Management?

An effective supply chain management system includes many aspects of measurement, and it must be able to reconstruct the distribution network, ensure the rationality of the distribution network, and solve the problem of distribution strategy. Supply chain management must be able to solve the problem of inventory control, and must have reasonable product involvement, guarantee technical support, and measure customer value at one time.

6 Advantages Of Third-Party Logistics In Supply Chain Management

Advantages Of Third-Party Logistics

Save investment

According to the survey results of industrial vehicles, the main reason for companies to dismantle their fleets and instead seek public transportation services is to reduce the related fixed costs, which include not only the investment in purchasing vehicles but also related to workshops, warehouses, deliveries, etc. Expenses related to facilities, packaging machinery, and employee wages.

Save money and clear inventory

Third-party logistics can provide a more professional transportation mode, so it can save more costs for customers in terms of transportation costs. In addition, it can also clear the company’s inventory, which is also a good value-added service for companies, and It is also very beneficial to the flow of funds of enterprises.

It can improve the operating efficiency of the enterprise.

If the goods are entrusted to third-party logistics, then the enterprise does not have to worry about transporting its goods, and can have more time to manage its enterprise. Operational efficiency will naturally rise to a higher level.

Improve corporate image

Third-party logistics service providers and customers are not competitors, but strategic partners. They consider customers and optimize their supply chain management through a global information network. They have complete control over the entire supply chain with complete facilities and a well-trained workforce; they help customers improve service and build brand image by shortening lead times through a global network of shipping and service providers.

The image of the customer’s enterprise has been greatly improved

Third-party logistics and customers are a kind of partnership relationship, and all aspects must be considered for customers. In addition, the solutions proposed by third-party logistics are all customer-oriented to improve logistics transportation efficiency. To do better to establish their brand image.

Innovation management

Third-party logistics services can use innovative logistics management technology and advanced channel management information system of logistics service providers to open up business development paths for themselves. Excellent third-party logistics service providers generally have extensive networks around the world and have experience and expertise in developing logistics services. When an enterprise plans to conduct business in an unfamiliar geographical environment, it can make full use of the professional technology and experience of third-party logistics service providers to carry out relevant operations.

Top 5 Third-Party Logistics Providers To Improve Your Supply Chain In 2022

Amazon

Amazon Logistics

Amazon logistics can realize zero inventory transfer, provide an efficient warehouse management mechanism, and achieve effective control of inventory by establishing good cooperative relations with suppliers. Big data can be used to predict consumer demand and proactively respond to orders.

DHL

DHL Logistics

DHL connects people in more than 220 countries and territories around the world. With the combined efforts of the company’s more than 380,000 employees, DHL can provide comprehensive services and customized solutions for the management and transportation of letters, goods, and information.

Honest Fulphilment

Honest Fulphilment Logistics Provider

The Third-Party Logistics Service provided by Honest Fulphilment can provide customers with a full range of services. Honest Fulphilment’s 3PL has multiple overseas service warehouses, which can meet the needs of different people in different regions and ensure the timeliness of logistics. Moreover, Honest Fulphilment has a professional logistics service team, which can ensure the timely update of logistics information, and provide a professional supply chain management team to escort each of your transactions.

UPS

UPS Logistics

UPS (United Parcel Service, Inc.) was founded in 1907 and is headquartered in Atlanta, Georgia, USA. It is a world-leading logistics company, providing parcel and cargo transportation, international trade facilitation, and advanced technology deployment. and many other solutions designed to improve the efficiency of global business management.

FedEx

FedEx Logistics

FedEx is an international express group that provides overnight express, ground express, heavy cargo delivery, document copying, and logistics services. FedEx provides customers and businesses with a comprehensive range of services covering transportation, e-commerce, and business operations.

Conclusion

Third-party logistics plays an important role in the entire supply chain management process. Choosing a good third-party logistics provider can help us reduce logistics costs, expand the brand effect of products, and improve our profits. Honest Fulphilment can help you improve your benefits and will be your best choice! Come and contact us!

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