Supply and demand is the cornerstone of any business. However, businesses often concentrate on selling their product, and don’t necessarily have the time or resources to efficiently manage their supply needs. There are a number of solutions to this; however, perhaps the most efficient is hiring a third party logistics provider. Depending on the business needs, a third party logistics provider can offer solutions for, among other things, pick and pack warehousing, transportation distribution services, and warehouse distribution services.
Effectively, a third party logistics provider takes over most or all of the business’s supply chain management functions. This allows the client to concentrate on other aspects of the business, such as customer support and sales. The service is not a one-size-fits-all solution; which is very a third party logistics provider is an ideal strategy for any business. Services are customized to the business, and the provider will often go beyond basic logistics and offer value added services. These added services may include cross-docking, order/delivery tracking, added security and specific packaging.
While it is obviously an additional cost to the business to use such a service, the very nature of service essentially offsets the cost. A third party logistics provider will help reduce transport, warehousing and labour costs. A more efficient supply chain will reduce loss of stock, returns and customer complaints – all of which come at a cost to the business. A provider who can streamline and centralize the supply chain will help businesses build customer confidence and ensure a professional service. As a strategy, hiring a third part logistics provider is one of best investments a business an make.