As any international company that has looked to export to the United States will tell you, the logistics of getting your product from point A to point B on time and undamaged can be complex and is key to success in the market. Any product that is imported into the US requires extensive logistics planning and management which can be overwhelming for a new entrant. That is why an increasing number of international companies are choosing to use the services of a Third Party Logistics (3PL) provider.
According to the Council of Supply Chain Management Professionals, 3PL is defined as "a firm that provides multiple logistics services for use by customers which are preferably integrated, or bundled together, by the provider. Among the services 3PLs provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding."
To a great extent a good 3PL partner can act as a ‘virtual’ presence for international companies first starting out in the States. Some 3PL providers will be ‘system driven’ meaning they have set procedures and systems that the company will have to adhere to. Others called ‘Customer Developers’ are more proactive in fine-tuning their business, procedures and systems to meet individual customer needs.
A Customer Developer 3PL will undertake the following on behalf of the client company:
· Arrange transportation / freight forwarding from a customers manufacturing location or a specified shipping location to the warehouse;
· Be responsible for all the appropriate customhouse brokerage;
· Warehouse the product;
· Advise on inventory control, offer full material management / customer service, order fulfillment; and
· Pick & pack different orders and arrange domestic freight forwarding and transportation.
Some will also provide full management reporting for the activity of their customers business in each specific market. A select few can even raise invoices and answer the phone for you!
All of these services can, of course, be provided by many different entities but only a true 3PL Customer Developer will package everything under one umbrella and assume responsibility across the supply chain from international port to customer delivery.
Author:
Max Lewis
Import Logistics Inc.
Aurora, Illinois, U.S.A.
About Import Logistics:
Since 1971 Import Logistics Inc. has grown into one of the leading specialist providers of third party logistic services for off shore manufacturing companies exporting to the United States. Vast experience coupled with contemporary technology allows Import Logistics to be an effective link between our clients and their customers. The object of our integrated resource is to enable our clients to deliver a local customer service level that is fully equivalent to their competition.
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