The rise of globalization has made it possible for large and small organization to extend their reach abroad and offer their good and services to a larger market. However, as globalization has increased the supply chain has also extended and has made logistics more complex. So what happens when small organizations do not have a logistics department of their own or the logistics is too complex even for large organizations? In these cases it is common for organizations to outsource this work to a third party logistics provider or (3PL).
Third party logistics providers offer a wide variety of services for organizations such as planning, distributing, and storing in their warehouses, or manage the entire supply chain. If a problem arises abroad the third party logistics provider can take care of it because they will be more familiar with the local regulations. Using 3PL providers helps save time that can be devoted to better serving customers and also saves money on staff, facilities, and transportation equipment.