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Recent Trends in Logistics
1、 Third Part Logistics
Third Part Logistics provides all the logistics services. They act as a bridge or facilitator between the first part (supplier or producer) and the second part (buyer or customer). The primary objectives of third part logistics providers are to lower the total cost of logistics for the supplier and improve the service level to the customer.
Third Part Logistics have been growing rapidly. Cost reduction and demands for better and cheaper services are the main drives behind the growth. A third part logistics provider will be in a position to consolidate business from several companies and offer frequent pick – ups and deliveries, whereas in-house transportation cannot. Other reasons are as follows:
* The company does not specialize in logistics
* The company does not have sufficient resources
* Eager to implement better logistics operation or does not have time to develop the required capabilities in – house;
* The company is venturing into a new business with totally different logistics requirements;
* Merger or acquisition may make outsourcing logistics operations more attractive than to integrate logistics operations.