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1. Understanding of 3rd party logistics

With the continuous deepening of enterprises' understanding of the new thing of "3rd party logistics", the business of 3rd party logistics has formed a huge market. The transportation industry is familiar with freight forwarders. In fact, freight forwarders can be called third party transportation, which is the third party between the carrier and the shipper.

And 3rd party logistics is a third party between producers and consumers, so it is basically a concept of an intermediary, not an innovation in logistics development. It's just that third party transportation is carrying out cargo transportation organization and management business, while 3rd party logistics is carrying out logistics system or supply chain and organization and management activities.

2. Traditional transportation industry and 3rd party logistics

3rd party logistics actually provides professional logistics activities for production or suppliers, and third party transportation is one of its main businesses. Therefore, transportation companies should not abandon the production or processing companies and only care about logistics. The development of logistics facilities is not the performance of the development of logistics. It must not be considered that the development of a fleet and the construction of some stations or warehouses are developing 3rd party logistics.

Of course, in a broad sense, any enterprise related to the logistics industry, including shipping companies, railway companies, automobile companies, air-entry companies, ports, stations, warehouses, etc., can be called a logistics company.

But to be precise, the real 3rd party logistics company is an entity that directly faces production or processing enterprises and provides logistics services for them, such as logistics operators.

The development of 3rd party logistics is not a necessary choice for transportation companies. Of course, logistics is an emerging field. Transportation companies have the conditions and reasons to make a strategic choice to develop 3rd party logistics. This should be a vertical integration strategy for transportation companies.

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Search more information about 3rd party trucking companies.

Here are some coming events in pharmaceutical industry for your information:

CPhI Discover
Time:May 17-28, 2021
Country/Region: Netherlands
Venue:Online Event
Organizer:Informa Markets

CPhI Worldwide 2021
Time:November 09-11, 2021
Country/Region: Italy
Venue:Fiera Milano, Italy
Organizer:Informa Markets