Globalization in logistics: 3PL
Globalization has been one of the biggest business trends influencing transport and logistics. Cargo companies expand to foreign markets and strengthen their positions in various geographies to maintain competitiveness and offer clients better, more personalized services.
In logistics management, globalization and technological development are creating a new way of working in the transport business. Cooperation among all supply chain participants increases product accessibility, improves interaction with clients, and expands new market opportunities.
Over the last several years, logistics companies have started to align agents into a single supply chain by actively using Third Party Logistics (3PL) services. 3PL involves outsourcing part of or all logistics functions to a third party, usually a specialized service provider. More and more companies understand the effectiveness of such types of supply chains and actively tap these 3PL services to compete in global markets. According to a professional logistics market study by reputable European company Eye for Transport, 60% of 500 European transport companies work with at least one 3PL services provider.
Results of the “Annual 3PL research” for 2017 point out that currently, 3PL services help 71% of cargo deliverers develop alternative transport solutions and play a significant role in setting the costs and level of services for 61% of trade routes. An expert understanding of logistics service providers supports cargo companies in client interactions, strategic management, and information technologies.
AsstrA-Associated Traffic AG is a good example of a multinational logistics company using 3PL services in business operations. The company, founded in Switzerland in the late 90’s, has grown into a crossborder concern represented in 16 countries in Europe, the CIS, and Asia. During the comany's history, AsstrA specialists have succeeded in offering solutions in logistics markets experiencing a variety of substantial business, economic, legislative, technological, and geopolitical changes, with globalization and the rise of information technology the most recent among them. AsstrA takes an active, innovative approach to management while providing optimal logistics solutions for clients.
Denis Gural, Executive Director at AsstrA, noted that with regards to globalization: “We understand that clients running businesses on a global scale require a complex, comprehensive range of services from flexible suppliers able to respond efficiently. Therefore, we aspire to become a key player in the market for logistics services, regardless of where demand drives it.”
Globalization often leads to a fierce competition from all corners of the globe and favors deep-pocketed businesses able to monopolize local markets and make growth difficult for small- and medium-sized companies.
The expert logistics team at AsstrA is ready to consult clients on the pros and cons of global business expansion with optimal logistics solutions that minimize risks and losses.