Logistics Service Makes Life Easier
Logistics service means that somebody is helping to provide more valuable operations. Logistics is difficult. There is a lot to it, especially when we’re dealing with a complete supply chain. A logistics service can help you with different types of logistics and in many areas.
So, value-added logistics service is like asking for help and it is a great thing to do. Getting a little bit of expertise in areas where we have difficulty provides huge value. Logistics service is, for example, asking a freight broker to help you find trucks. Another example is asking for help with the movement of goods from one place to another. This is whether it goes over rail, air, or international it doesn’t matter which way it goes.
Using Logistics Service For A Little Help
Now, asking for help is what logistics service is about. The logistics service providers charge you for it and do make money but they are providing value. A value of knowing how to move this freight in the most effective ways possible. Or how to make it so that it provides a more streamlined supply chain for your business.
Having some help to do that and having the expertise around brings optimization. It also brings tremendous dollar gains to the supply chain for your business.
What The Third Party Does
So 3PL logistics services are a logistics service provided by a third party. A third-party logistics provider is a company who does not own the equipment that is being moved.
So for example, we are going to move some freight on a truck from California to Texas. The manufacturer is in California and they don’t own any equipment. They don’t move a lot of freight to Texas, so they need a little bit of help.
Instead of calling a carrier, or trying to find a specific truck they use a third-party provider. There are small operations where they only own two or three trucks. So, finding availability requires some expertise. It requires somebody who knows how to search for that availability.
The Value Your Company Gets
A 3PL is somebody who you can call and they will help find that truck. They will start the movement of the freight for you. But, they do this without actually taking possession of the freight. They are going to help find the truck. They will find availability. And they will qualify the carrier, make sure the carrier has all their safety in order.
Further, they will make sure they have the proper insurance for the product that you are moving. Also, they will make sure that the carrier is going to actually move it to the final destination. They will make sure the carrier will not steal it along the way and things along those lines. That is what the 3PL’s there to provide.
How The Process Works With Logistics Service
So that 3PL is going to coordinate the freight and even manage the dollars. So they will collect the money from the manufacturer and pay the carrier. But they never pick up the freight because they will coordinate to have the truck drive to that facility.
The truck picks up the freight from the facility and brings it over to Texas. Usually, that 3PL will follow up with the freight, and the truck along the whole delivery cycle. They communicate back to the shipper and to the company who is the recipient of the freight.
How Teknowlogi Can Help You
So logistics service providers come in lots of different shapes and sizes. At Teknowlogi, we specialize in logistics service providers for the domestic United States. We also work in other areas but that is our sweet spot.
So for us, the logistics service providers are people who start the movement of freight. Even if it is a hotshot or a small truck delivery, a final mile or a white glove delivery delivering it into the house.
All these types of deliveries and moves are things that a logistics provider would do. In the end, their job is to manage the movement of something from one place to the other. There are a lot of different variations on what types are out there and how they do that.
Focus On Your Specialty
So these logistics providers are about helping start that movement. The value that they bring when doing that, is to show another company how to do it with some more expertise behind it.
So, for example, if you are a manufacturing company, your specialty is in that and focusing on the process. You focus on the supply chain associated with that as well. You are making sure you have products in time while going through manufacturing. The logistics behind that is still something completely different. Another piece that has to get managed to bring that material in and out of the facility. Your logistics service can add value and can help out in those types of situations.