In recent years, cross-border e-commerce has developed rapidly around the world and continues to affect people’s lives. The development of cross-border e-commerce has also increased the demand for logistics. The development of logistics not only affects the sales of sellers, but also affects the shopping experience of consumers.The rapid development of cross-border e-commerce has brought a potentially huge market to logistics.Therefore, the professional development of the logistics system has been paid more and more attention.
As the impact of the COVID-19 continues to ferment
Port congestion and insufficient transport capacity will have many adverse effects on the logistics costs, timely delivery, and operational efficiency of cross-border enterprises.
In the first quarter of this year, affected by the outbreak of COVID-19 in China and the impact of the situation in Russia and Ukraine on the global supply chain, the operating costs of cross-border sellers in the first quarter were pushed up, especially logistics costs, resulting in a decline in overall profits.
Cross-border sellers face choices
The situation of poor logistics has profoundly affected the normal operation of sellers. At the same time, logistics costs have increased exponentially, and sellers’ profits have been squeezed. Although they are top sellers, they are also deeply affected by logistics.
Therefore, more and more sellers are beginning to seek professional third-party logistics and warehousing services in overseas warehouses, thereby reducing logistics time, cost, and cumbersome logistics processes.
Cross-border logistics transportation mode
Cross-border logistics generally choose express or air transportation for small items, generally do not need customs declaration and customs clearance, and can provide door-to-door service.
The bulk is generally by sea or railway, which requires documents and customs clearance. Time is relatively slow. But it’s cheap. It is the main mode of transportation for cross-border logistics.
International logistics mainly include international express, international surface mail, international air, and international shipping.
1.International express: take the express way of customs declaration and transport by air, including:
①International postal express: such as mainland EMS, Singapore EMS, USPS (US Post), PARCEL FORCE (UK Post);
②Commercial express: TNT, UPS, DHL, FEDEX, collectively referred to as the four major express;
③Dedicated line: Transport to foreign countries by air charter, find a reliable logistics cooperation company for destination delivery, and deliver it directly to your doorstep.
2.International surface mail: international small package, postal large package;
3.International air transport: take the official customs declaration route and transport by air;
4.International shipping: take the official customs declaration route and transport by sea.
In the face of numerous cross-border logistics models, integrating and distributing logistics resources has become the core business of third-party logistics companies. This also saves most of the time and cost of exploration for sellers, so what are the advantages of third-party logistics?
Advantages of third-party logistics companies
1. Have professional level and corresponding logistics network
Through professional development, third-party logistics companies have developed information networks and accumulated expertise for different logistics markets, including transportation, warehousing and other value-added services.
Many critical information, such as available truck volumes, international customs documents, air freight quotes, and other information are often collected and processed by third-party logistics companies.
For third-party logistics companies, it is convenient and economical to obtain this information, because the cost can be spread among many customers.
Access to this information and expertise can be prohibitively expensive for non-logistics-specialized companies.
2. Has economies of scale
Due to its strong purchasing power and cargo stowage capacity, a third-party logistics company can obtain a lower transportation price from the transportation company or other logistics service providers than its customers, and can purchase transportation services in large quantities from the transportation provider, and then Centrally stow the goods of many customers, which greatly reduces the unit transportation cost.
3. Helps reduce capital investment
Through logistics outsourcing, manufacturing companies can reduce the investment in transportation equipment, warehouse investment and other necessary logistics processes, thereby improving the company’s profitability and investing more funds in the company’s core business. Many third-party logistics companies have good transportation and distribution networks at home and abroad. Companies looking to expand internationally or in other regions for growth can use these networks to enter new markets.
4. Resource optimization configuration
Third-party logistics enterprises can also enable enterprises to achieve optimal allocation of resources, focus limited manpower and finance on core business, conduct key research, develop core technologies, and strive to develop new products to participate in world competition; save costs for enterprises, reduce capital backlog, Reduce inventory and enhance corporate image.
Third-party logistics providers and customers are not competitors, but strategic partners. They are for the sake of customers. Through the global information network, customers can make their supply chain management completely transparent. Customers can know the situation of the supply chain through Internet at any time. 3PLs are logistics specialists who use complete facilities and well-trained staff to achieve complete control over the entire supply chain and reduce logistics complexity.
5. Have information technology
Many 3PLs have allied with independent software vendors or have developed in-house information systems that allow them to maximize the use of transportation and distribution networks, effectively track shipments, conduct electronic transactions, and generate information that improves supply chain management efficiency. Necessary reports and other related value-added services.
Because many third-party logistics companies have made a lot of investment in information technology, they can help their customers figure out which technology is most useful, how to implement it, and how to keep up with the rapid development of logistics management technology. Cooperating with the right third-party logistics company can enable enterprises to fully enjoy better information technology with the lowest investment.
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