Third-Party Logistics

Companies can use third-party logistics providers for different reasons. Primary, because obtain the product to market is their primary focus, these providers can frequently do it more powerfully and at lower cost than clients whose strengths lie elsewhere. According to one study, outsourcing warehousing alone normally results in 10 % to 15 % price savings. Another expert estimates that companies may save 15 % to 25 % in their entire logistics costs by outsourcing. Secondly, outsourcing logistics frees a company to focus more strongly on its core business. At last, integrated logistics companies understand increasingly complicated logistics environments. It can be especially helpful to companies trying to develop their global market coverage.