Logistics Service Providers - Do They Have A Role In Your Organization?

Logistics is an integral part of any organization and an effective logistics system can ensure efficient achievement of business goals of the organization. Logistics service providers are facilitators which help the organization in an easy and economical manner. They help to provide a timely delivery of the raw material, semi-finished and finished goods, whether externally or internally, using different modes of transportation such as sea, land or air.

Previously, there was no focus on transportation of the products as the raw material suppliers were in proximity to the organization's premises. This approach to logistics was indeed limited in outlook, as the area in which logistics operate nowadays is surely bigger than this. In the modern work environment, logistics is not only concerned with internal movement of goods within the premises, but also extends to logistical material movement and covers a vast area that includes inventory control, re-ordering of products, and ensuring that the supplies are made 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 logistics 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 maximization of profits and overall growth and development of the organization.

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 rely upon and 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 manufacturing locations around the world with its help. The problems of movement, warehousing, distribution, storage and customer service are benefited through logistics. 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 third party logistics (3PLs). Third party logistics are organizations which are specialized 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.

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