What are third-party logistics providers, and why do companies use them?
Third-party logistics providers are organizations where a business firm approaches outsourcing elements of its warehousing, distribution, and fulfillment of services. They encompass anything that involves the management of one or more facets of procurement and fulfillment activities.
The third-party logistics providers allow the companies to accomplish more, with the tools and infrastructure to automate retail order fulfillment. They provide a range of storage, distribution, transport, and fulfillment services to the customers. Third-party logistics offer end-to-end management of specific services.
There are mainly three types of logistics: inbound logistics, outbound logistics, and reverse logistics. Third-party logistics providers are capable of managing multiple areas of a business firm's supply chain. And they enable in managing their logistics operations in an accost-effective and productive manner.
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