A large number of companies around the world have enhanced their logistics by hiring a logistics operator. Logistic procedures are very important for any company, especially for those dedicated to retail sales.
The manufacture and sale of goods depends on the good execution of all aspects of the production and distribution process, if only one part works badly, everything else can fail. That is why many companies hire the services of a logistics operator.
What is logistics?
Logistics is the set of means and methods necessary to carry out the organization of a company or a service, especially distribution. It is fundamental for commerce. Logistics activities form a system that is the link between production and markets, which are separated by time and distance.
Business logistics, through logistics and supply chain management, covers the management and planning of the activities of the purchasing, production, transport, storage, handling and distribution departments.
As you can see, it is complicated for a company to manage all these processes. It requires qualified workers, specialized software, storage facilities and transport units. That is why many companies decide to outsource their logistics through a logistics operator.
A logistics operator is a specialized company that a company subcontracts to act as its logistics department.
Types of logistic operators:
1PL: First Party Logistics
They are those operators who deal only with the transport of the goods. They are basically transport companies. They move their transport units to the warehouse of the company that has contracted their services and distribute their products.
2PL: Second Party Logistics
This type of logistics operator is responsible for the transport and storage of the goods. It manages both distribution and storage, so it has transport units and one or more warehouses.
3PL: Third Party Logistics
In addition to taking care of transport and storage, these logistics operators manage and verify the entire logistics process to optimize the production and distribution of the company that contracts their services.
4PL: Fourth Party Logistics
The operator is responsible for optimizing both logistics management and the supply chain.