Everything You Need to Know About Third-Party Logistics in Dubai

As business landscape gets very competitive and scale of operations get global. This makes it necessary for companies to focus on their core functions of production and marketing and outsource logistics to third party service providers. 

Third party logistics providers undertake the entire gamut of activities of a company related to distribution of goods and services. They act as a middle layer between the manufacturer and the end-user.  They either own or lease storage facilities and get the best deals with shipping companies which reduces the overall cost of distribution.

Advantages

Third Party Logistics (3 PL) helps companies securely grow business in new markets and promote global trade. It helps companies save time spent on distribution and warehousing. For 3 PL to succeed, the partnership between the logistics service provider and the company should be a long term contract.

Leveraging and Flexibility

3 PL service providers help companies leverage their vast resources whether it is transportation assets or warehouse supplies. 3PL service providers also continuously optimize their processes and distribution or distribution partners. 3 PL provides flexibility for businesses during good times and bad times.

Choice of 3 PL

There are several considerations to be kept in mind while finalizing 3 PL service provider. Prime among them is location. A nearby 3PL service provider gives easy access to their warehouse. They should have local presence with national and international distribution channels.  It would be better to include the full range of services in 3 PL. It includes warehousing, inventory management, fulfillment, freight functions and product returns. 3PL service provider should be able to provide long term value. For this an evaluation of services offered and their costs have to be assessed.

Expertise

Expertise and experience count a lot in logistics business especially when working in global markets. An experienced third PL provider will be capable of meeting challenges and navigate the difficult situations. 

When deciding to go for 3PL services three things have to be kept in consideration. It should make financial sense. It should also be done out of an assessment of internal resources and the need for for streamlining efficiency.   Most importantly there should be mutually agreed upon service level agreements that cover proprietary information and steps to avoid data breach and loss of trust between the countries. 

If you are looking for a 3PL service provider in Dubai, Total Freight International is willing to offer those services.

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