The true meaning of Logistics

The term logistics remains an enigma, many people associate the term logistics with shipping. By definition logistics is the movement of goods or services from point A to point B however, the definition fails to add on all the other activities needed to facilitate such movement including custom clearance, drayage and final delivery to point B

To make matters more confusing, we have terms such as supply chain and procurement that are used in its place of logistics.  Too set the record straight, logistics, shipping, transportation, etc. are part of the supply chain umbrella and then came the term “third party logistics” which people somehow associate with warehousing.

The first 3PL companies started it out as freight forwarders who opened warehousing and delivery and then expanded to other services.

Any warehousing company or trucking company can call itself a 3PL that is why you need to check the services that company offers.

A true 3PL company offers a multitude of services such as:

  1. Ocean and air freight services
  2. Inland transportation
  3. Order fulfillment or pick and pack
  4. Warehousing services
  5. Cross dock services
  6. Customs clearance
  7. Packaging services
  8. Inventory control

Lately, many associate the term 3PL with order fulfillment.

Now, keep in mind that not all 3PL companies are created equal. In reality, only a few of the 3PL companies that show up on search engine searches are a true 3PL company; most of them just offer warehousing services.

A 3PL company should be able to take over your day to day fulfillment needs.

After a careful research you will find out, hopefully not the hard way, that only a few can deliver a solution.

A true 3PL company should be able to pick up the goods from your vendor and deliver them to the end user transparently with a continues flow of goods and information.

In a time where online shopping is blooming, thanks to Amazon, many small to medium size companies are outsourcing their fulfillment services to 3PL companies taking advantage of their expertise and off course cutting the operational cost.

Warehousing

Warehousing and warehouse management are part logistics management , which is itself a component in supply chain management. Although viewed by some as simply a place to store finished goods, inbound functions that prepare items for storage and outbound functions that consolidate, pack and ship orders provide important economic and service benefits to both the business and its customers
Warehouses provide a economies of scale through efficient operations, storage capacity and a central location. Economic benefits are realized, for example, through consolidation and accumulation operations. Consolidation operations cut outbound delivery costs for both the business and its customers. Instead of shipping items individually from multiple sources, items are delivered to a central warehouse, packaged together and shipped back out as a complete order.

Warehousing can also be defined as assumption of responsibility for the storage of goods. By storing the goods throughout the year and releasing them as and when they are needed, warehousing creates time utility.

Functions of Warehousing

1. Storage

2. Price Stabilization

3. Risk bearing

4. Financing

5. Grading and Packing

Our Value added warehousing services are those which complement and enhance warehousing, transportation, and logistics offerings. Using our services enables companies to lower inventory footprints of finished goods by delaying the labeling and final assembly of products until customer orders are received. This is a cost effective supply chain strategy that gives companies more flexibility over their inventory.

International 3pl Value Added services provide solutions that go beyond the basic warehousing and transportation servi ces that come to mind when companies look to outsource logistics.

What is value Added warehousing:

Receiving, inspection and stocking
Full pick, pack and ship
Compliance labeling
Kitting and light assembly
Outbound and returns processing
Quality assurance
Lot control, serialization
Expedited shipment processing

Our value added services including packaging, product customization, and assembly. Get your products to market knowing you are getting the safest, most cost-effective, and highest quality system to help you achieve your goals.

Move your fulfillment closer to your customers.

Tell us about your products, order volume, and current pain points. We'll design a micro fulfillment solution that fits your operations and budget.

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