In the past 25 years, the freight industry has undergone many shifts, with many businesses now opting to outsource their freight logistics to third-party logistics suppliers instead of managing both their in-house freight and warehousing needs. Third-party logistics providers offer integrated or “bundled” services that can be adapted to the needs of a customer to provide some or all of the supply chain management functions of a business. Such services can include transport, inventory control, storage, storage, cross-docking, order fulfilment, and freight forwarding, enabling companies to focus more on their core business.Do you want to learn more? visit
In today’s highly competitive marketplace in which businesses need to become leaner, cutting costs and properties, outsourcing logistics to a third-party logistics provider makes sense. For a corporation, labour and related costs are among the highest, making outsourcing of freight management and personnel very cost-effective. Via outsourcing, warehousing costs can be greatly reduced, reducing asset liability as well. Scale performance enables third-party asset logistics firms to provide Fortune 500 companies with favourable prices for small and medium-sized enterprises at a competitive level.
Logistics firms provide several companies with in-house logistics departments with the experience, skills, and networks which are otherwise inaccessible. They are able to negotiate much lower freight rates than individual companies would usually warrant, since they have relationships with transport carriers with whom they do a large amount of repeat business. By taking advantage of a centrally-located third-party logistics business in a major hub city with warehousing and order-fulfilling facilities, additional savings are possible. Small and medium-sized companies can thrive and succeed in a global marketplace by outsourcing expensive, international tasks essential for business, but not part of the core business.