Supply Chain
3.2 Supply chain industry
A company’s supply chain is its central nervous system for how it creates and distributes a product. The industry is made up of the key players who participate in this process, including manufacturers, wholesalers or distributors, retailers and transportation companies.
There are three main areas of a company’s supply chain. They include: (Refer to the Picture below) * Procurement or the “buying” process. This includes the purchasing of the raw materials needed to make the products. * Production or the “making” process. This includes the manufacturing or assembling of the raw components into the finished goods or parts. * Distribution or the “movement” process. This includes everything involved in the logistical flow of getting the products from one point to the next. The distribution portion of the supply chain is also called “logistics” and involves aspects such as warehouse management, materials handling, inventory control, packaging and transportation.
3.3 Third party logistics provider
Third party logistics providers, also known as 3PLs, serve a similar role as an internal transportation department. They work with carriers and drivers to manage the scheduling and movement of products from point A to point B.
Some 3PLs can do much more than just strictly manage a company’s transportation. For instance, they may also have a cold storage facility in which they warehouse the company’s products. Other 3PLs, strictly manage the physical transportation of the company’s products.
Often times, the benefit for a company to use a 3PL (versus owning a private fleet or working directly with a carrier company) is time and money savings. Instead of making numerous calls to find a carrier, the company only has to make one call to the 3PL. The 3PL, in turn, does the work to find and negotiate with a carrier. Third party logistics providers also offer their clients greater flexibility, industry expertise and knowledge, large
A company’s supply chain is its central nervous system for how it creates and distributes a product. The industry is made up of the key players who participate in this process, including manufacturers, wholesalers or distributors, retailers and transportation companies.
There are three main areas of a company’s supply chain. They include: (Refer to the Picture below) * Procurement or the “buying” process. This includes the purchasing of the raw materials needed to make the products. * Production or the “making” process. This includes the manufacturing or assembling of the raw components into the finished goods or parts. * Distribution or the “movement” process. This includes everything involved in the logistical flow of getting the products from one point to the next. The distribution portion of the supply chain is also called “logistics” and involves aspects such as warehouse management, materials handling, inventory control, packaging and transportation.
3.3 Third party logistics provider
Third party logistics providers, also known as 3PLs, serve a similar role as an internal transportation department. They work with carriers and drivers to manage the scheduling and movement of products from point A to point B.
Some 3PLs can do much more than just strictly manage a company’s transportation. For instance, they may also have a cold storage facility in which they warehouse the company’s products. Other 3PLs, strictly manage the physical transportation of the company’s products.
Often times, the benefit for a company to use a 3PL (versus owning a private fleet or working directly with a carrier company) is time and money savings. Instead of making numerous calls to find a carrier, the company only has to make one call to the 3PL. The 3PL, in turn, does the work to find and negotiate with a carrier. Third party logistics providers also offer their clients greater flexibility, industry expertise and knowledge, large