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Dudley Lorentzen posted an update 3 years ago
Third party logistics refers to the tasks that are assigned to one or more people who work within a single organization. These people are often independent contractors such as department and store owners, managers, and HR professionals. They are responsible for managing the resources of their employers in terms of production, inventory, and so forth. In fact, many of these people may not even reside within the employer’s establishment, but instead may work remotely from location or from a warehouse or other outside location.
fulfillment of these third party contractors can be defined broadly. These resources can include stock, raw materials, and so on. The assets of these employees can also be defined broadly. These might include vehicles, buildings, furniture, office supplies, and so on. Often, we think of the assets of these workers as the goods or services themselves. This is particularly true with the US based third-party logistics operators and providers.
The goods or services that are produced by employees of a US based third party logistics provider can be distributed to their various locations through trucking companies, fleets of trucks, airplanes, vessels, trains, and so on. Many US based third party logisticians operate in an “off site” mode so that they can quickly and easily get the job done even if they have to travel for several miles from their point of origin. Some logisticians also choose to provide their services on an “asset basis,” so that they receive a percentage of the total value of the items that they transport.
The role that these types of vendors play in the supply chain is often considered one of the more interesting parts of the supply chain, because it is a dynamic process which constantly changes and updates itself based upon the priorities and requirements of the buyers. It is also one of the more unique forms of vendor engagement. When a customer needs something, it is important to note that it has already been purchased by another entity. This is why US based third party logisticians are also often referred to as “asset” vendors they not only purchase the good themselves, but also obtain a percentage (or margin) of the profit that is made by the entire sale.
There are many benefits to having a US based logistics company as a client. For one thing, a US based logistics provider will be familiar with all of the requirements and regulations which must be met in order to import the merchandise that they have ordered. They will also know exactly how to transport this product to its destination in the most efficient manner possible. Finally, a US based third party logistics provider will be experienced in meeting all of the time deadlines that must be met. Their ability to work within timelines is vital to the success of any operation.
But there are some disadvantages associated with having a US based third party logistics provider as a client. The biggest drawback is that their workers (known as contract workers) will not normally receive any sort of benefits provided by their employer. Most often, the warehouse workers are the only employee who actually receives paid time off. This means that they must take care of themselves financially during their time off. Another disadvantage of having a US based logistics provider as a client is that they will not usually take on as many custom orders as an international based logistics provider. Again, because they are not US based, they will not be familiar with all of the requirements which must be met in order to import merchandise.
In order to compensate for these disadvantages, many US companies prefer to contract with a third party logistics provider who is based in the US. A US based logistics provider will allow the shipping company to ship the merchandise to the customer without worrying about paying customs and other fees. Additionally, US based logistics companies will usually only require that the shipment meet certain size requirements and delivery parameters. Once these guidelines are met, the US based logistics provider will take possession of the shipment, and the shipping company will be responsible for clearing, packing, and delivery of the merchandise to its customers. For many US based shippers, this arrangement makes sense since it allows them to avoid paying extra fees to international shipping companies.
Clearly, there are pros and cons to both types of services. For companies that do not yet have the time or resources to establish a logistical plan, it may make sense to contact a third party logistics provider who will help them to streamline their operations and ensure that their products get to their customers on time. In addition, for companies who already have a solid logistical plan in place, using a third party logistics provider can provide additional benefits such as reducing the time it takes to get the shipment from the supplier’s dock to the customer, and can also provide additional ways to reduce the cost of shipping. Ultimately, the decision regarding which method of shipping to use should be made according to both the needs of the company, and the specific characteristics of the products it ships.