| These traditional services that are an essential part | | | | than many other service providers, often because |
| of local and international trade are now routinely | | | | business managers seek to relieve frustration in |
| referred to as LSPs (Logistics Service Providers) and | | | | managing functions that are considered non-core |
| includes US Outsourced Warehousing and Distribution, | | | | competencies, reduce costs and improve customer |
| US Outsourced Order Fulfillment, International | | | | satisfaction. Outsourcing logistics functions transforms |
| shipping, and everything in between. In some cases all | | | | companies as they focus on core strengths, allowing |
| three services are offered by one company, in | | | | them to meet corporate profit targets. |
| others, a company may offer only one or two of | | | | The challenge to LSPs, whether freight forwarder, |
| these services. Regardless, all will be referred to as | | | | warehouse, carrier or other type of provider is that |
| LSPs. | | | | the LSP environment is highly competitive. LSPs must |
| The Importance of Logistics. Logistics is not simply | | | | strive to maintain and gain customers with a winning |
| moving goods from point A to point B. To the | | | | combination of competitive price and a high level of |
| contrary, whether outsourced or not, if the logistics | | | | customer service. Specifically, the most important |
| cost can be reduced, the price of particular products | | | | single competence of an LSP is a thorough |
| will be reduced, the profit will increase thereby | | | | knowledge and understanding of the local market |
| increasing the opportunity to lower prices which will | | | | they serve. Additionally, LSPs must have excellent |
| encourage demand. The impact upon a region or | | | | management, knowledgeable staff, and employ best |
| country becomes obvious. | | | | practices applying the latest available technology. |
| The Role of Outsourcing. Worldwide, as well as in the | | | | Equally important is effective marketing, including |
| United States, LSPs are growing at rates far greater | | | | online advertising. |