Logistics Outsourcing

Today's companies face enormous pressures brought about by competition, customers, global sourcing, marketing, and the rapid pace of technological change. Developing responses to these pressures, through sound logistics planning, technically linking all functions together under one system, is extremely challenging. Logistics management involves the efficient movement of products from the manufacturer to its users. Logistics activities include everything from procurement, transportation, storage, and distribution to the final customer. These different task must be well integrated and carefully managed in order to operate effectively. Excellent logistical systems offer a company the benefit of speed, flexibility and control that can translate into a tremendous competitive advantage. Logistics plays a major role in providing timely and competitive services to customers. It is also the largest component of cost to many companies.

Warehousing acts as a buffer to minimizes the effects of supply chain inefficiencies and is rapidly becoming more complex as industry takes a harder look at how to best conduct business. There is a shift towards eliminating warehousing and inventory and outsourcing it to 3PL providers. As the importance of warehousing increases so does its complexity. Warehousing will continue to play a critical role in assuring high levels of customer service and overall logistics performance.

Several companies provide outsourcing services. They include: Schneider and Penske in the US, and Exel Logistics and Tibbett-Britten in the UK.