Logistics Service Providers – Do They Have A Role In Your Business?

Logistics service providers are facilitators that help businesses by providing timely delivery of raw material, semi-finished, and finished goods, whether externally or internally, using different modes of transportation such as sea, land or air. Logistics is an integral part of any organization and an effective logistics system can ensure efficient achievement of business goals of the organization.

Throughout most of history, there was little focus on transportation of the products as the raw material suppliers were in proximity to the user’s premises. This approach was indeed limited in outlook, as the area in which logistics operate nowadays is massively bigger. In the modern work environment, logistics is not only concerned with internal movement of goods within the premises, but also extends to cover a vast area that includes inventory control, re-ordering of products, and ensuring that the supplies are available at the right time and are in the right place.

Logistics nowadays is witnessing a trend of rapid long-term growth that is benefited by the booming global international market and continued outsourcing in the field of manufacturing. The changes observed nowadays in the logistics sector are the result of stiff competition, favorable regulatory policies, and synergies resulting from mergers and acquisitions. Logistics is as important to an organization as its core principles for the attainment of maximum profits and overall growth and development.

These days, with outsourcing and globalization being such familiar concepts, the concept of logistics has evolved to a greater height with ample job opportunities. The business enterprises of the modern-day economy now want to develop logistics as an integral part of overall management. Parts, goods and even sub-assemblies are manufactured and moved from various parts of globe to locations around the world with its help. The problems of movement, warehousing, distribution, storage and customer service can be greatly benefited by logistics service providers. In the current global scenario, where serious competition is the norm, no organization wishes to be left behind.

Outsourcing has made shifting of businesses to locations which are economical and efficient very easy. The cost of labor is the primary motivator for outsourcing by organizations. This trend has given birth to a new type of entity termed as 3PLs, or third party logistics. Third party logistics are organizations which specialize in outsourced logistics services. They provide the company with efficient services and manage the pick-up and delivery of shipments on its behalf. They also make sure that the consignment is departed from the most economical and optimal route keeping in view the time and cost factors. Logistics service providers are also beneficial in providing economies of scale as they tend to combine several orders from various customers into a sole shipment. They also provide various other services to its customers such as bar coding, inventory hubs and track-and-trace abilities.