What are the third party logistics? What are the advantages and disadvantages?
Enterprise self built logistics needs to invest a lot of money to purchase logistics facilities, build warehouse and information network and other specialized logistics facilities. These resources are a heavy burden for the enterprises lacking funds, especially the small and medium-sized enterprises. The use of 3PL not only reduces investment in facilities, but also frees warehouse and fleet funds and accelerates capital turnover.
If you are a supplier of raw materials, and your raw material needs customers need to quickly replenish the supply, you must have a regional warehouse. The 3PL warehouse service, you can meet the needs of customers, not necessarily because of the construction of new facilities or long-term lease and transferred to capital and operating flexibility is limited. If you end product suppliers, the use of 3PL can also provide customers with more than the end of their own to provide their diverse range of services, to bring more value-added customers, so that customer satisfaction improved.
3PL can meet these requirements in a fast and cost effective way that is often difficult to achieve by manufacturers alone. Similarly, 3PL also has the ability to meet the potential customer needs of manufacturing firms, thereby contributing to the communication between producers and retailers.
Enterprises can concentrate on engaging in their own familiar business, the allocation of resources in the core businessBusinesses focus on the core business. Due to limited resources, it is difficult to become an expert on top of the business. For this reason, enterprises should concentrate their resources on the main industries which are good at it, and leave the auxiliary functions such as logistics to the third party logistics companies.
