What are the third-party logistics companies?

China Ocean Shipping (Group) Corporation, Sinotrans Changhang Group Co., Ltd., China Shipping (Group) Corporation, etc.

Third-party logistics enterprises refer to external suppliers who provide all or part of logistics services for the company. Logistics services provided by third-party logistics providers generally include transportation, warehousing management and distribution.

In this process, the third-party logistics provider is neither a producer nor a seller, but a third party that provides services in the whole logistics process from production to sales. Generally, it does not own goods, but only provides logistics services such as warehousing and distribution for customers.

In the 1990s, one of the outstanding achievements of the logistics industry was the widespread rise of the third-party logistics service provider (3PLs), which outsourced activities outside the company's core business and was generally regarded as a symbol of modern efficient supply chain management.

According to the research of outsourcing research institute in new york, 35% of the chief executives (CEOs) of third-party logistics think that the main reason for outsourcing their customers is to reduce the cost of activities, another 30% think that their customers outsource to avoid investing in non-core businesses and activities, and only 17% think that their customers outsource to improve their services.