The 6 Core Functions of Third-Party Logistics
Customer requirements continuously change. The supply chain for every product or service needs to change with the demand to promote customer satisfaction. In this article, we examine the core functions of third-party logistics (3PL) companies and how they have evolved from being simple providers of transportation services to complete solutions for customers’ warehousing, distribution, and fulfillment concerns.
The procurement function is one of the most important in a 3PL. It’s this role that helps suppliers find new customers and manage their relationships. A good procurement manager should be able to work with suppliers, negotiate contracts and make sure they get paid. This can be difficult if you’re dealing with a small company that doesn’t have much money or is located outside of your region.
2. Order Fulfillment (Order After Receipt)
Another function of third-party logistics is order fulfillment (often called order after receipt), which refers to coordinating between different stakeholders in your supply chain such as suppliers, customers, sales representatives, and more to ensure that orders are received on time, processed correctly and shipped out as quickly as possible. This process is often referred to as order management or just “order management.”
Warehousing is one of the most important functions of 3PL. Warehousing is the act of making sure that goods are stored in a warehouse and available to be shipped out. The warehousing companies will take care of all the logistics involved in transporting goods from their origin to the destination.
4. Transportation Management (Transportation Planning)
Third-party logistics companies also offer transportation management services where they work with carriers or freight forwarders to coordinate transportation between ports and warehouses, track shipments as they’re transported across different parts of the world, or even outsource this activity entirely if your business doesn’t have any internal resources capable of doing so.
5. Supply Chain Management
Third-party logistics companies are not only responsible for managing the supply chain, but also for managing the entire process of moving goods from the origin to the destination. This includes everything from receiving goods at a warehouse, packing them for shipping, loading them onto trucks and planes, checking inventory levels, and verifying orders with customers. Third-party logistics companies can also provide additional services like transportation management and so on.
6. Quality Control
The sixth function of 3PL is quality control – ensuring that all products meet their specifications before they are shipped out for sale or use by customers. This can include everything from testing samples for quality control purposes when sourcing new materials, to checking finished products for defects before sending them off for sale.
What TGL Offers
TGL is a logistics company that offers high-quality and affordable services to companies across the globe. As a logistics company, our value lies in our flexibility to provide clients with cost-effective solutions to meet their specific needs. At TGL, we recognize that each client has different needs and so our experts are always standing by to help you every step of the way. We handle our client’s freight with total transparency. By offering value-added services at affordable prices, we help them to reduce their costs and improve their profit margins.
Get in touch with our experts to discuss your logistics requirements
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?