Day by day it becomes more and more apparent that third party logistics is emerging as the most logical alternative for firms desiring the most cost and service effective supply chain possible. As the current recession is now on the verge of morphing into an all out Depression, any viable alternatives for firms to save on their expenses and be more efficient through collaborative logistics services co-ordinated by 3PLs should be seriously explored.
As well, logistics technology continues to become more complex and costly with advanced systems and RFID (Radio Frequency Identification) and the need for collaborative supply chain initiatives across company borders increase, third party logistics becomes an even more attractive alternative. In order to better serve this multi-billion dollar industry and the customers of third party logistics providers, Supply Chain Network has established a new Linked In group dedicated to this important and rapidly growing industry, which you can join here Third Party Logistics @ Linked In.
Current consumer products supply chains from manufacturing through to retail include many, many layers of distribution. Each of these layers adds cost and inventory to the overall supply chain system and even more cost is added because these supply chains are for the most part managed independently which does not allow for the capture of the potential collaborative logistics synergy benefits that exist in all supply chains.
To learn more about these logistics synergy benefits, feel free to review our previous SCN article entitled The Logistics Synergy Revolution which describes the three logistics synergy indicators (LSIs) of Overlap, Offset and Readiness which can then be tapped into by utilizing the logistics synergy facilitators of Collaboration and Synchronization resulting in positive Critical Mass Outcomes and Fixed Asset / Services Sharing arrangements.
All of the above can be simplified into direct logistics cost savings opportunities which will drop right to the bottom line of companies who take the time to properly investigate and work with Third Party Logistics companies which understand and are reconfiguring the consumer products supply chains to capture these benefits.