Jetstream Aerospace

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Pages: 3

Category: Business and Industry

Date Submitted: 09/28/2012 11:27 AM

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Jetstream Aerospace

1.Third Party Logistics, or 3PL, is the outsourcing of logistics services. 3PL operators organize the management of the flow of goods and optimize financial and information resources for product shipment and distribution. With Jetstream potentially acquiring a 3pl there are many pros and cons. The benefits of 3PL are time and cost saving and a higher quality in product shipment and distribution. Benefits of logistics outsourcing include having time that you save by delegating the distribution process to a specialized company. Having experience of working with various groups of products, 3PL providers can organize a better and more effective distribution process. Logistics outsourcing does not mean that the company loses control over its goods while they are being transported. High-quality logistics outsourcing always includes distant management of the flow of goods. Using a laptop, the client can order additional product delivery from any place, if he unexpectedly gets an order. By managing the whole distribution chain, 3PL operators can choose optimum routes and means of transportation and offer an optimum range of services to each client. Due to the synergetic effect, 3PL operators offer discounts. Also third Party Logistics is more than simply transportation or freight forwarding. 3PL operators deliver goods from A to B while observing cost and time limitations and with respect to risks acceptable for the client.

The downsides of 3PL include 3PL providers that has not worked with a particular product before would need time to get accustomed to it, which could lead to financial losses. 3PL providers should use conveyer technology and an automated warehouse management system otherwise there could be excess supplies and late deliveries. Another is that many logistics companies state minimum prices and then charge extra fees. For example, they say that the package is three centimeters bigger than was agreed, which leads to additional expenses....