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The meaning of third-party logistics

by:CNS     2021-07-11
The significance of third-party logistics 2021-06-20 09:27:19 From the perspective of third-party logistics service outsourcing companies, the use of this logistics service model has the following significance for improving the business efficiency of enterprises. (1) Improve core competitiveness. With the acceleration of social division of labor and the improvement of social specialization, companies have outsourced non-core businesses and concentrated their main resources on core businesses. This can give full play to the advantages of specialized division of labor and improve Core competitiveness. For most companies, logistics is a non-core business. Outsourcing logistics can enable companies to focus on core business and use limited resources for core business. Corporate resources can be used more effectively, and it can also benefit from third-party logistics companies. The core operating capabilities of the company have given the company a stronger competitive advantage. (2) Reduce operating costs For a long time, logistics companies from Guangzhou to Hainan have to keep a certain amount of inventory in order to respond to changes in downstream demand in the supply chain, which will inevitably increase inventory costs and warehousing investment. If a third-party logistics company uses its logistics facilities and management skills to provide value-added services, it can reduce corporate inventory, reduce costs, and enhance its ability to respond to the market. With the continuous development of manufacturing technology, there is little room for companies to reduce production costs, but there is more room for reducing circulation costs. Third-party logistics companies rely on their economies of scale and cost advantages to enable customers to save money. Logistics-related manpower, management, and operating expenses can reduce capital occupation and reduce costs. (3) Improve the level of logistics services. Enterprises have diversified requirements for transportation and logistics. The logistics operation mode of third-party logistics with personalized logistics services as the goal can be 'customized' according to the special requirements of users, and provide personalized solutions Program. The flexibility of service can also be realized by third-party logistics, because they have established a logistics system covering a wide range, which can provide various services for different enterprises across different industries to meet the special requirements of customers. At the same time, when companies enter new markets, they can use the local experience, knowledge, network and business relationships of third-party logistics companies to open up new markets faster and better to meet the needs of users in new markets. (4) Enhance market adaptability. Transferring logistics functions to third-party management can enhance the enterprise's adaptability to market changes. When demand changes and technology advances, third-party logistics companies can continuously update facilities, information and management technology, adjust according to environmental changes, and enhance their flexibility. Non-logistics companies often cannot compare with them. Companies can cooperate with third-party logistics companies based on changes in market demand to reduce investment and increase their sensitivity to the market. For seasonal production, flexibility is even more important. Because of the seasonality of demand, production is often ahead of the consumption season, so the demand for logistics activities such as warehousing is also seasonal, so the use of third-party logistics can adjust the production and sales of enterprises in time, with seasonal flexibility. (5) Accelerate the process of putting products and services on the market. In order to gain competitiveness in time, products and services must be quickly introduced to the market. Third-party logistics companies can use their strong logistics network to help customers achieve a competitive advantage in speed. Guangzhou to Hubei logistics strengthens information exchanges, improves the speed of logistics activities such as warehousing and transportation, speeds up delivery, delivery and response time, reduces the lead time of product production and delivery, and quickly delivers products to various production bases or market needs In order to gain the advantage of time competition. However, logistics business outsourcing has many advantages and risks and disadvantages. Enterprises must fully identify their core competitiveness, consider their position in the supply chain and the competitive environment, and consider the business costs and investment of the company. Loss and other economic factors, a comprehensive analysis of the company’s situation, weighing the pros and cons, to determine whether third-party logistics services are needed and how to choose a third-party logistics company. Therefore, companies need to repeatedly weigh the risks and benefits of outsourcing logistics, take certain preventive measures, and make scientific decisions. When choosing a third-party logistics company, it should be measured and inspected according to its logistics network structure and facilities, price, quality, reputation, management level (especially the level of information management), employees, business scope and past experience. In addition, the decision-making of logistics outsourcing of enterprises is a complicated process. The cooperation between umbrella industry and third-party logistics enterprises is also a long-term running-in process, which needs to form a strategic partnership with them, integrate resources, and participate in market competition together. 1852
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