Outsourcing Freight Transportation | International Business Program

Transportation companies offering 3^rd party logistics make shipping freight simple for firms by offering domestic truckload shipping, rail, intermodal, and air freight services. They also provide international shipping services, including custom clearance and warehouse storage for their clients.

Building and maintaining a profitable business takes a great deal of time and effort.? Sourcing products, negotiating prices, and marketing these products to the end user is difficult when a company also has to worry about shipping, tracking shipments, and warehouse management. Outsourcing the logistics makes it easier for companies to focus their efforts on their core business, while letting transportation experts handle the logistics.

The increasing complexities of freight movement, both domestically and internationally, have made outsourcing logistics a booming business. Companies can be assured they are the best possible transportation solution at the best possible price without investing in transportation equipment, hiring drivers, figuring out the complexities of customs paperwork, or arranging for rail transport. ?In addition, logistics providers already have sophisticated freight tracking systems in place, eliminating the need for companies to purchase this software themselves.

Solutions offered by 3^rd party logistics providers also include warehousing and distribution and cargo insurance. Companies who outsource logistics, depending on their size, can save the costs of hiring multiple employees to oversee these functions and make sure all regulations are followed. Instead, only one person is typically needed to act as a liaison with the logistics provider.

Companies who outsource their shipping to 3^rd party logistics providers can use the transportation and storage providers for some or all of their needs. Many companies find outsourcing saves them money as logistics providers can negotiate deep discounts with trucking and shipping companies, A small company could never get the volume discounts that a logistics company can negotiate. The savings offers smaller companies a real advantage when competing with larger firms who handle all of their transportation needs in-house.

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Source: http://www.internationalmediaprograms.com/business-info/outsourcing-freight-transportation-1102.html

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