Difference in Supply Chain and Logistics A supply chain is the network between a company and its suppliers and customers that includes all the transactions involved in transforming raw goods into salable products.
Definition of Supply Chain A supply chain is the network between a company and its suppliers and customers that includes all the transactions involved in transforming raw goods into a salable products.
Everything you need to know about domestic intermodal and how to be successful implementing it into your logistics strategy. Gives tips, tricks and insights on intermodal and what to watch out for when converting from truckload to intermodal.
Definition of Logistics Service Provider (LSP) Logistics Service Providers, or 3PL (third-party logistics) providers, are outsource entities shippers leverage to manage a company's warehousing, distribution and transportation of freight.
Definition of Managed Transportation Services Solution: Managed Transportation Services Solutions (Managed TMS) involve shippers outsourcing their freight and logistics processes to a third party logistics (3PL) provider.
Definition of Third Party Logistics Company (3PL) A third-party logistics company (3PL) offers outsourced logistics and supply chain service solutions for shippers. A company can outsource all or just a portion of their logistics requirements. According to Armstrong & Associates the third party / contract logistics market size is $184.3 billion. 90% of Fortune 500 Companies utilize a 3PL in their logistics and supply chain strategy. Third Party Logistics Services: Freight Brokerage Freight Management Freight Consolidation Freight Audit & Pay Inventory Management Warehousing Order Fulfillment Final Mile Customization Technology When companies outsource logistics functions, they can either choose a single service or bundle the above services to craft a customized logistics services solution that best fits their company's needs. Third Party Logistics Benefits: Cost Savings Reduce Capital Requirement Scale & Flexibility Gain Expertise & Knowledge Technology Third party logistics service relationships can be: Transactional The 3PL is used on an as needed basis with no long-term contract. Tactical The shipper and 3PL have a negotiated long term agreement outlining services and prices. Strategic The shipper and 3PL have a negotiated long term agreement outlining service management fee, with a pass through on all costs making for a fully transparent relationship. Professional Organizations Associated with 3PL's: Counsel of Supply Chain Management Professionals (CSCMP) Transportation Intermediaries Association (TIA) International Warehouse Logistics Association IWLA) Other Articles of Interest: When to Use a Freight Broker in Your Logistics Strategy Benefits of Managed Transportation Services: Comprehensive Guide How Much Does Managed Transportation Services Cost? A Comprehensive Pricing Comparison between Freight Broker and Managed Transportation Services Freight Operation Models