The use of third-party logistics has become an increasingly important part of the global economy as the world becomes more connected through the use of the internet. This has become especially relevant with the modern explosion in online shopping, which relies on a well-connected network of shipment and storage logistics in order to move goods from manufacturers to customers. To gain a better understanding of this important field, we turned to information from Freight Hub Group, a leader in third-party logistics. Look to the below information to better understand how goods make their way along a typical supply chain.
One important part of many supply chains is order fulfillment. Since many goods are housed at warehouses operated by third-party logistics companies, these companies are often involved in the process of delivering goods to customers. Otherwise said, it is not typical for a representative from a company that sells a product to visit a third-party warehouse whenever a customer order is placed. Instead, it is often expected that the warehouse operator will receive the order and handle the process of retrieving the item from storage and passing it along the supply chain to the customer.
This process relies on robust communication between a third-party logistics company and its clients. For instance, when a relationship is first established between these companies, a client will often fill out documentation detailing how goods should be handled and the process that will be used for delivering goods to clients. That way, when an order is placed, there is already an established system for how such an event will be carried out. As such, a warehouse operator can simply follow the pre-established guidelines and work to make a delivery that will be in line with the quality standards expected by both the client and the customer making the order.
Role of technology
Of course, the above process is helped greatly by technological development in the modern era. These types of customer fulfillments are commonly handled automatically thanks to such pieces of technology, which often involve the use of web platforms that are directly accessible by clients. These platforms allow clients to easily set up their preferences for fulfillment processes and make changes when necessary. They also help clients track a myriad of important statistics related to their orders, such as warehouse supply levels, transportation locations, and delivery details.
One of the reasons that Freight Hub Group has been able to excel in its field is its early recognition of the importance of technology in the third-party logistics industry and the need for implementation of such platforms into their business operations. The company’s innovative system, TruckHub, offers its customers direct control over numerous stages of the supply chain. This includes a focus on both communication and automation to ensure orders are handled seamlessly. The goal of the platform is to provide clients with an “Uber-like experience” that provides flexibility and inspires trust that storage and shipping logistics will be handled as expected.
As touched upon above, storage is merely the first part of the fulfillment process. After an order is placed by a customer, and a specific good is retrieved from a warehouse, the next phase of the journey is centered around transporting that good to the customer. This is typically handled through less-than-truckload (LTL) shipping options. LTL shipping is often utilized in last-mile shipping because it is a cost-effective way to ensure goods are delivered in a timely and efficient manner. Since warehouses are often strategically located in a variety of locations to enable short delivery distance at the end of a supply chain, this shipment method can typically be utilized directly from a warehouse.
LTL shipping stands in contrast to full truckload (FTL) shipping, which is often utilized when a collection of goods is large enough to completely fill a truck bed or other shipping container. It can also be used when a client wants to ship goods by themselves, even though they do not completely fill a shipment method, such as in a case where special considerations must be undertaken during transportation. While FTL is an oft-used shipment method for delivering goods to a warehouse or across long distances, LTL is typically the favored method when a fulfillment process is seeking to deliver goods from a warehouse to a customer.
The information provided in this piece stems from the extensive background of experience provided by Freight Hub Group as it serves customers from its location in South Florida. The company was founded by CEO Luis Lopez after his own early experience in the third-party logistics industry taught him there was an opportunity for improvement. By utilizing an approach with a strong focus on technology, he’s been able to advance the quality of typical offerings, such as the transportation of hazardous materials. This has helped clients achieve a level of agility and flexibility in their planning that was previously difficult to find.
At present, the company is known for the quality of its offerings through its four main subdivisions, known as Dray Hub, FTL Hub, LTL Hub, and WHSE Hub. With its location near both the Port of Miami and Port Everglades, the company is able to offer these services in a customizable fashion that takes into account its clients’ needs for drayage, storage, and transportation options that work on their own terms. This collection of resources has helped set the company apart as a leader in the field of third-party logistics and a reputable source of related information.
Though the need for adequate storage, transportation, and fulfillment services has become more pronounced with the increased popularity of online shopping, many individuals and organizations still have gaps in their understanding of the field. The above overview, created with information from Freight Hub Group, can help to fill in those gaps and provide a more complete understanding of how a product can move from a manufacturer to its final destination. Utilize this information, along with other resources on the subject, to help improve the quality of your business plan and your ability to deliver goods to customers.