Thursday, January 15, 2015

How Advanced Third-Party Logistics Can Accelerate Your Business

In the last century, third party logistics began as a simple public warehousing approach. Over the last 25 years, the evolution of today's logistics capabilities has dramatically accelerated.

With a widening array of omni-channel product acquisition systems and multiplying customer touch points, the transport industry is now facing its own revolution. Multi-client third party logistics solutions is the ultimate facilitator.

Third-party logistics providers can help you accelerate your business by effectively managing and facilitating your company’s logistic processes. Third party logistic companies bring along with professional skills, adequate transport capabilities, a suitable infrastructure, and software that streamlines and integrates your logistic and administrative processes.

Leveraging Third-Party Logistics

With an extensive experience in logistic services and relentless focus on your business, advanced third party logistics providers offer you an industry-specific solution fully integrated with ERP platforms. Third party logistics extend the standard functions of the world-class software with specialized add-on modules that can accelerate your investment return.

Third party logistic services usually include:
  • Transport and logistics services
  • Outbound logistic – shipping, multiple picking algorithms
  • Inbound logistics – put away, goods receipts
  • Advanced logistics – return logistics, cycle counting, intercompany warehouse transfers
  • Route planning
  • Advanced location management – pick locations, bulk locations, cross docking
  • Automated inventory replenishment
Specialized ERP platforms such as SAP Business One used by third party logistics providers, offers industry-specific functions for traceability and quality management.

These advanced functions allow your company to ensure the dock-to-dock traceability of product flows and manage the quality of your manufactured and traded goods. This way your company will be able to act fast and deal easily with incidents such as recalls.

Finding Value in Warehousing & Fulfillment

In order to deliver products rapidly and meet customer needs whether to the office, store, home, pick up center, or locker box, the products will actually need to be deployed closer to the end consumer. It is expected that the demand for advanced third party logistics providers will continue to increase. However, not all third party logistics providers are created equal (i.e. some focus on warehousing while others also offer transportation services so you need to carefully choose a trusted and reputable company to work with.

The role of third party logistics providers is to consolidate multiple customers into the same regional operation. Their methodology provides sufficient volumes to justify investing in systems for automated fulfillment. Retailers will continue to expect more and more from their third party logistics provider. The cutting edge third party logistics operations are expected to be Regional networks, Omni-Channel, Multi-Client, with Environmental stewardship.

Multi-Client

Multi-Client third party logistics is all about creating shared facilities that can effectively house in the same operation multiple clients. The benefits of this type of third party logistics are:
  • Jointly shared ROI for fulfillment automation
  • Space flexibility and capacity to scale the space of logistics facility up and down
  • Flexible cross trained staff
  • Shared redundancy and management team

Omni-Channel

Omni-Channel third party logistics is allowing your customers to effectively purchase your products in any manner they choose: kiosk, tablet, mobile, PC, in-store or virtual store. The benefits are:
  • Provide case or each picking
  • Combined demand leads to distribution center inventory reductions
  • Rapidly Service both direct to customer demand and store
  • Rapid replenishment leads to store inventory reductions

Regional networks

Regional third party logistics help getting closer to the customer by operating fulfillment centers in local regional markets. The benefits are:
  • Supports inventory and store size reductions
  • Supports rapid service for Omni-Commerce deliveries
  • Frequent and rapid deliveries improve store in-stock
  • Enhanced customer experience

Environmental stewardship

Environmental stewardships respect the sustainability agenda. The opportunities and benefits are:
  • Environmentally friendly LEED Facilities
  • Regional facilities can minimize transportation
  • Multi-client recycling
  • Automation utilizing equipment that is energy efficient

3 comments:

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