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Overview of Third Party Logistics Services
(A) the meaning of third-party logistics

Third-party logistics is a new concept and way of logistics management, and its concept comes from outsourcing in management, namely outsourcing. But third-party logistics is not the same as outsourcing. The so-called outsourcing refers to the extensive external entrustment of business, and the third-party logistics is developing to a newer and higher level, which contains richer contents:

With its personalized service, the scientific nature of establishing alliance between logistics enterprises and customers lies in fully embodying the principle of rational division of labor in society, and providing personalized service for logistics demand enterprises with its professional advantages, that is, providing customized services for individual business characteristics of specific customers instead of providing general services for multiple customers, which has changed the relationship between logistics enterprises and customers. From "one-to-many" to "one-to-one", that is, logistics enterprises rely on customers and customers regard logistics enterprises as logistics. Without any party, enterprises cannot operate effectively or even survive.

Based on modern electronic information technology, realize integrated logistics service for customers. The traditional outsourcing of enterprise logistics functions is mainly the external entrustment of one or several logistics functions, which is decentralized, such as entrusting warehousing functions to warehousing companies and transportation functions to transportation companies.

(B) the advantages of third-party logistics services

Third-party logistics services have brought many benefits to enterprises, mainly in the following aspects:

1. Focus on main business: An enterprise can concentrate its limited manpower, financial resources and material resources on its core business, conduct research and development of new products and technologies, and improve its competitiveness.

2. According to the investigation results of industrial vehicles, the main reason for enterprises to disband their fleets and turn to public transport services is to reduce related fixed expenditures, which include not only the investment in purchasing vehicles, but also the expenditures related to workshops, warehouses, delivery facilities, packaging machinery and employees' salaries.

3. Reduce inventory: With careful logistics planning and timely transportation, third-party logistics service providers can reduce inventory costs and improve the cash flow of enterprises.

4. Innovative management: Third-party logistics services can use the innovative logistics management technology and advanced channel management information system of logistics service providers to open up business development paths for themselves. First-class third-party logistics service providers generally have extensive networks around the world, and have the experience and professional knowledge to carry out logistics services. When an enterprise plans to do business in a strange geographical environment, it can make full use of the proprietary technology and experience of third-party logistics service providers to carry out related operations.

5. Enhance corporate image: Third-party logistics service providers and customers are not competitors, but strategic partners. They think of customers and optimize supply chain management through global information network; They can use complete facilities and well-trained employees to achieve complete control of the entire supply chain; Through the global transportation network and service providers (subcontractors), they greatly shorten the delivery time, help customers improve their services and establish a brand image. Third-party logistics service providers develop customer-oriented, low-cost and high-efficiency logistics solutions through "tailor-made" design, which makes customers stand out in the same industry and creates favorable conditions for them to win in the competition.