Third Party Logistics in Companies

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Third Party Logistics

Companies continue to achieve meaningful growth even in the wake of economic lacks around the globe. Third party logistics companies can make growth irrespective of the economic cycle with their gross revenue capable of growth above the rate of growth of the GDP of a country. The first reason is the e-commerce where companies assume aggressive marketing, which see their rate of sales spur. E-commerce is changing how people shop and interact with the structured integration and cross-border logistics platform to complement the online shopping. Outsourcing is another reason for growth, where companies have been contracting others for their logistics functions intensifying in the wake of the global recess and financial crisis.

E-commerce, outsourcing, and logistics automation are creating new opportunities for third-party logistics firms with exclusively specialized logistics designs for clients (Chase, & Jacobs, 2014). The increasing complexity of the supply chain demands innovative technology to support the service and processes involved. Running lean supply chains require business intelligence and demand analysis backed by automation of the logistics process (Chase, & Jacobs, 2014). With the complexities arising in the sector and increasing demands, larger companies to offer the broad set of services to support their processes come up. The services help integrate services across end-to-end business processes across boundaries.

Third party logistics companies can offer varied services required by the larger company to integrate to other processes that would otherwise be expensive if undertaken by one company. Smaller companies are specifically lagging behind because of the lack or minimal capacity to support their system and knowledge concerning resources and skills (Chase, & Jacobs, 2014). The small level of knowledge and ability and inability to apply contemporary methods and tools negatively affect performance of the smaller companies contributing to their lagging.

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