Third Party Logistics Provider: Disadvantages and Functions

Third Party Logistics Provider
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Supply chain management is a crucial part of the company’s business processes. Like most other services, logistics in the supply chain management process can be outsourced to other third party companies that are competent enough to handle the services. Third party logistic providers (3PL) are companies that major in offering their customers logistic services to the specifications of the customers in an integrated manner (Cardinallogistics.co.nz, 2016). The most common services offered by 3PL, include inventory management, warehousing, packaging, transportation, distribution, assembly and cross docking among others. Relative to the company’s expertise, knowledge of the industry and resources they can help their customers maximize profits.
There are quite a number of benefits that customers can accrue from 3PL, one of them being access to resource networks. Most of the 3PL, have expansive resource networks which come with high efficiency and effectiveness. This further improves the ability of the customers to tap into a massive resource base for their supply chains, which is not possible to develop in-house. This means that customers are able to access world-class services, technologies, processes and resources (Cardinallogisti...