As experts in transportation and logistics, we at Synter Resource Group have developed a reputation of success, efficiency, and care in the fifteen years we have been in service. Being the connecting point between supply and demand and acting as a pivotal part in supply chain management, Synter Resource Group has a thorough understand of businesses’ needs in the daily workings of logistics management.
A Multifaceted Definition
To define 3PL, let’s first turn our attention to Margaret Rouse, a contributor for and overseer of WhatIs.com,. She is skilled in defining technical terms for businesses that use niche vocabulary terms. According to Rouse, “A 3PL (third-party logistics) is a provider of outsourced logistics services. Logistic services encompass anything that involves management of the way resources are moved to the areas where they are required.” To further explain this process, The Council of Supply Chain Management Professionals (CSCMP) states the following:
“Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.
“Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution–strategic, operational and tactical. Logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology.”
A Simple Example
A perfect example of how this works is to think of a delivery service company (think UPS, USPS, DHL, etc.). Transportation and logistics companies work with companies like these get all the goods and materials they transport to the correct locations, such as warehouses or other businesses.
As technical as the language can get, the processes involved in B2B transportation and logistics are quite simple. As intricate and multifaceted as transportation and logistics management can get, this blog covers a basic definition and scope of what we cover each and every day at Synter Resource Group.
Think we are missing anything? How do you describe such a broad topic like transportation and logistics? Tweet us @SynterResource with your thoughts and questions!