Importance of Supply Chain and Third Party Logistics

The supply chain process is a widened management area that takes into consideration the combined influence of all the organizations engaged in the production of services and goods, from manufacturers to suppliers, retailers, wholesalers and finally to the customer, and take it beyond recycling and disposal.

This way of managing the logistics network and production, presumes that all enterprises dealing with the process of goods and services delivery essentially form a part of a pipelines, network or a supply chain. This consists of everything that is needed to satisfy the end users and customers, and involves understanding which goods and services customers are likely to purchase, how to produce and deliver them.

The supply chain management guarantees that the customers with the correct goods that too at the apt time, at a desired location within a comfortable price range.

The modern day business scenario is characterized by increasing complexity, competition and territorial business opportunities. It is owing to the ongoing improvements and broadened scope in personal computing that has made it possible to optimize the supply chain performance.

Internet boom and electronic mail have revolutionized the information and communication exchange, enabling in the required flow of inputs between the supply chain and organizations. In addition to that, there are companies that are reaping the benefits of the Cloud processes in the supply chain process.

Enterprises who have been observing a stringent supply chain management system have reported to witness significant cycle and cost time minimizations. In the recent past, certain retail giants declared their decrease in out-of-stock phenomena, rise in inventory turns and a replacement process that shifted from weeks to days and now hours.

Keeping in mind the importance and benefits of the supply chain process in business, the market had seen an emergence of service providers offering new age supply chain solutions using the Cloud processes that cover various domains such as order fulfillment, after sales service, procurement and many others.

Furthermore, it offers a web-enabled visibility that comprises every SCM customers and contributors to offer greater customer value at a lesser price. Few essential components that the process offers are listed below-

  • Streamlining the workflow

Helps in setting up a supply chain with clear quantifiable processes

  • Offers focus

Helps in focusing and recognizing the issues and matters that require instant attention

  • Enhance

Helps in making well analyzed business decision to optimize and improve the SCM process

Leading companies dealing with SCM solutions have made it possible for companies such as manufacturing, retail, distribution, consumer goods, third-party logistics and transportation to enhance and attain synchronized control of the supply chain.

With the need for businesses to run efficiently, third party logistics businesses are growing more and more popular. Therefore selecting the right logistics company to manage your company’s supply chain is of utmost importance. Outsourcing logistics is a source of competitive advantage for most companies. Most companies are looking for ways to save money while also maintaining good services and quality products. There are many benefits to outsourcing the logistics part of supply chain management. Some of the benefits are as follows

  • Cost Effective

By switching to a third party logistics firm, companies can save a lot. With third party logistics, it is no need pay your own employees to do the logistics part of the supply chain service. Labor being an expensive part of a business, business can save a lot. Third party logistics offer significant, measurable administrative savings.

  • Good negotiating leverage

With third party logistics having better negotiating leverage with carriers rather than individuals, there are more competitive rates and greater free time allocations. They can get really good rates on storage for products, as they know the area and who to go to.

  • Superior information services

3rd party logistics are best positioned to combine and report disparate data. By their nature of coordinating the supply chain processes and transportation modes, they can offer superior value added information services.

  • Customized Services

Third-party logistics companies can customize their services as per the needs of your business. It can get difficult for the logistics team to have the resources to meet all of the requirements that come down from management. By outsourcing this process, there will be better availability of resources as the clients will need to be satisfied, and all the requirements of the management will have to be met. Most third party logistics companies provide resources that can help manage your operations depending on its nature.

  • Shipment Control

With vendor management and monitoring at the origin, third party logistic companies offer enhanced shipment control. To ensure that the shipments flow according to plan, the outsourced company proactively contact and work with overseas suppliers.

Before outsourcing, it is necessary to do a thorough research. Only if the third party keeps the standards of their clients, can a company save money and be satisfied. The third party logistics company you choose will share your reputation. It is hence important to opt for a logistics solution that can give the best services and is reputable with a history of helping their clients

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