A third party logistics company, is one which works together with shippers to manage another company’s operational departments. By using a third party logistics company, you are outsourcing your company’s logistics and distributions sector.
Third party logistic providers specialise in a multitude of operational sectors. These areas include:
- Integrating all operations
All of the above mentioned sectors are a tricky business. They demand a close eye, precise management and no mistakes. If your business relies on that of another, you need to ensure all your data and services are not only precise but the absolute best.
There are products and software that have been developed in order to aid in the streamlining across all third party logistics management.
Warehouse Management Software
A WMS aids in the streamlining of all warehousing operations. From inventory management to data capturing and even freight and product storage. In order to manage a warehouse optimally, there needs to be visibility across all sectors. By utilising a WMS you are able to streamline all warehouse operations in real time, with maximum visibility. This cloud-based, online software portal tracks all warehousing operations and makes sure you are utilizing your warehouse to the maximum capacity in the most efficient way possible. This covers 3PL’s in their warehousing, inventory packing and freight sectors.
Delivery and Reverse Logistics Management
DRM is a module which focuses on providing visibility and managing all operations that occur between the warehouse and the customer. Areas in which a DRM solution would be beneficial are:
- Loading of vehicles
- Real time communication
- Returns and collections
- Driver management
By having drivers on the road, there are many things that could do wrong. Imagine a system that allows fluidity between road users and those up in main head-quarters. Imagine being able to track every last minute from your head office without staying glued to the telephone. DRM is a mobile solution that uses the latest technologies to streamline point 1, 3, 5 and 7 of 3PL duties.
Strict communication between your suppliers are a must-have in this business. If you are a 3PL you are in charge of transportation and the products in getting them to your clients customers. By having a collaborative environment in pace directly with your suppliers, you are more likely to have a streamlines process. By keeping a close eye on all orders, you need to have the information to feed back to the rest of the company’s departments such as marketing, sales, and planning.
A supplier portal management system is ideal for businesses that are using a 3PL as well as suppliers. Everyone is able to view progress, orders, deliveries, collections etc at once while using this tracking tool.