Outsourcing logistics is best defined as multiple logistics services provided by a single vendor on a contractual basis. (Africk,Jon)
Some of the logistics functions performed by third party logistics providers include:
- warehousing
- distribution
- transportation
- inventory management
- order processing
- order fulfillment
- material handling
- track and trace
- customer service
- supply chain management
By outsourcing a function that has traditionally been handled internally with low priority to a professional logistics company that is highly skilled at managing your inventory at every point in the supply chain you will be able to develop a competitive advantage never fully realized within your organization and gain leverage over other companies in your vertical.