What are the advantages and disadvantages of Sifang Logistics?

1, improve business focus

Outsourcing all logistics functions, so that the company can focus on its core competitiveness.

2, high-quality logistics operation (or reduce costs, or both)

The professional ability of the fourth party logistics in managing logistics should bring about cost reduction, high-quality service, little damage and little delay. As a logistics expert, the fourth party logistics can find the best subcontractor for each function and design an effective overall process.

3. Better business flexibility

A supplier with strong professional ability is responsible for the logistics function, which can make the company's warehousing, transportation and packaging quickly adapt to the new market strategy and new products. Suppliers can negotiate with subcontractors, or find subcontractors who are more suitable for new business in terms of capabilities, technology, location or other aspects to replace the old subcontractors.

Disadvantages:

1, losing direct control over logistics links and all special functions.

2. If the fourth party tends to look for subcontractors instead of the most effective suppliers, it may be inefficient or more expensive.

In addition, logistics outsourcing will enable the contractor to communicate directly with the company's customers, which will also cause risks.

Extended data

In the fourth party logistics, logistics experts take over all the logistics business and subcontract some or all of it.

The role of the fourth party logistics is the general contractor, who subcontracts different logistics businesses and coordinates and supervises on behalf of customers.

Sometimes, it is also called third-party logistics, but because of the emergence of subcontractors, it has actually become a fourth party.

Usually the fourth party needs to charge a certain service fee, not a profit.