Samaritan Exim Pvt. Ltd. offers to its client's 3PL / 4PL services to manage their various functions in supply chain so that the principal can focus on core competencies and better manage and utilize company assets and resources and optimize inventory and personnel.
In the face of increasingly intensified competition in the emerging global economy, manufacturing and retail firms are progressively turning to outsourcing of their logistics functions.
Outsourcing is a viable business strategy because turning non-core functions over to external suppliers enables companies to leverage their resources, spread risks, and concentrate on issues critical to survival and future growth. One way of extending the logistics organization beyond the boundaries of the company is through the use of a third party supplier, or contract logistics services.
One of the most important reasons why companies outsource their logistics functions is the need to decrease the number of warehouses, vehicles, and excess inventories and to reduce shrinkage, and labor costs. Such moves bring down fixed and working capital investment. Companies can therefore focus on their core business activities and share the risks. Most firms direction considerable attention to working more closely with their channel partners, including customers and suppliers, and with various types of logistics suppliers. This has resulted in the development of meaningful relationships among the companies involved in the overall supply chain activity.
A third-party logistics (3PL) firm is an external supplier that performs all or part of the company's logistics functions. The definition encompasses providers of services such as transportation, warehousing, distribution and so on.
The use of third party logistics providers has grown dramatically over the last several years and has increasingly become an effective way to reduce costs and spread risks for traditional, vertically integrated firms.
As customers grow accustomed to using the services of a 3-PL provider for certain activities such as transportation and warehousing, they become better candidates for a broader range of service offerings, or value-added services.
As customers grow accustomed to using the services of a 3-PL provider for certain activities such as transportation and warehousing, they become better candidates for a broader range of service offerings, or value-added services.