What is Third Party Logistics?

Third Party Logistics (3pl) companies provide services to other companies by complementing or replacing their internal logistics operations with a cost effective and efficient third party company. By offering warehousing and distribution services along with transportation services, Third Party Logistics (3pl) companies can become an integral part of their customer’s supply chain.

What is a 3pl?

Third Party Logistics (3pl) companies provide services to other companies by complementing or replacing their internal logistics operations with a cost effective and efficient third party company. By offering warehousing and distribution services along with transportation services, Third Party Logistics (3pl) companies can become an integral part of their customer’s supply chain.

Customers who choose to invest in their supply chain technology can realize immediate gains.  In addition to the cost savings associated with outsourcing warehousing and distribution operations, there are larger dividends to be collected from investing in your technology. 

By integrating your Accounting/ERP system with your 3PL provider’s warehouse management system, you should expect to lower your customer service expense. After receiving an EDI 850 Purchase Order from your retailer, it can be electronically forwarded to the warehouse for fulfillment.  The warehouse can then produce the UCC-128 labels and send the ASN’s on your behalf.  This arrangement will result in increased order processing accuracy and timely ASN processing.

Rather than paying Retailer XYZ $50,000 in fines for late ASN’s (That amount is not unheard of), invest a few thousand dollars with a capable EDI provider and reliable 3PL warehouse.

Follow Logistic Edge on Twitter @California3PL for relevant information about California Warehouse and 3PL News.

California Warehouse Companies

Recent reports from various news outlets have covered the double digit cargo volume increases at the local ports.

Third party logistics companies with California Warehouse  locations are sure to benefit from this increase in coming months. The California Ports of Los Angeles and Long Beach represent a major hub for the logistics sector on a local and national level.

As import volumes continue to recover,  California Warehouse companies should be poised to take advantage of the increased volume.

California Warehousing and Logistics

Logistic Edge has recently been teaming up with Santa Monica College, located in Southern California, to promote the education of future logistics professionals.  The Business Department at SMC formed an advisory committee to solicit advice from Southern California logistics companies on the needs of employers in the logistics industry.

Our collaborative efforts have resulted in the formation of new courses at the college including:

Principles of Logistics

Transportation Managment

Supply Chain Management

Operations Management

These courses, along with several others, are currently being offered.  Completion of these courses can lead to a department certificate or AA Degree in the logistics program.  In addition, credit for some of the classes can be transferred to other 4 year universities.

The logistics industry in Southern California is a vital sector in the overall economy. Future job growth in this field will rely on a qualified pool of workers.  Local universities continue to recognize this demand as well. California State University San Bernardino offers a B.A. in Transportation and Logistics through their Department of Information and Decision Sciences.

We feel strongly about the future of the logistics industry in California.  Anyone considering a way to enhance their knowledge of this dynamic and important industry is encouraged to inquire with the local colleges and universities in Southern California.

A recent article written by David Novak, VP of Business Development at SPS Commerce, highlights the importance of having a Third Party Logistics Provider with the latest in software capabilities.

Current customers of Logistic Edge rely on our ability to communicate with their retail customers through EDI on a daily basis.  Vendor compliance is a top priority when dealing with any large retalier. The use of technology is the only way to consistently manage the changing guidelines.

You can read the article at Material Handling Management Online:

http://mhmonline.com/industrial-technology/news/stay-competitive-predictable-cost-3571/index.html

George Hynes, President of Logistic Edge, was recently interviewed for the current issue of Smart Business Magazine.

You can read the article entitled “Wheels of Change” online by following the link below. It is also featured in the May 2009 print edition of Smart Business Los Angeles magazine.

http://www.sbnonline.com/Local/Article/16808/75/0/Wheels_of_change.aspx?page=2

 There is a special Q & A section on the topic of logistics and transportation that follows the article.

http://www.sbnonline.com/Local/Article/16810/75/0/3_Questions.aspx?Category=183

SPS Commerce, the leading hosted EDI provider for B2B integration, has published a case study about Logistic Edge’s successful implementation of their technology. To read more about it, follow the link below:

http://www.spscommerce.com/resources/case_studies/cs_logistic_edge.shtml

As Wal-Mart continues to push forward with their RFID mandate, a larger percentage of suppliers will soon be affected. We are currently evaluating the hardware and software necessary to produce the EPC Labels. As a full service third party logistics provider, we intend on investing in the technology to offer this value added service.

Although the overall deployment of RFID in the retail supply chain has been slow, it will continue to gain momentum as retailers look for ways to increase visibilty and efficiency.

Stay tuned. We’ll provide updates on our progress and developments with customers who benefit from this service.