Third-party logistics providers are critical in the supply chain environment. Third-party logistics companies focus on managing all aspects of the supply chain except for product manufacturing. They are responsible for storage, transportation, quality control and other tasks. They focus on the movement of goods from the point of origin to the point of consumption.
These companies offer services at lower costs than most manufacturers can provide them on their own. By using third-party providers, manufacturers can free up their time to concentrate on core competencies that help them maintain a competitive edge in the marketplace.