Logistic sourcing
Logistic sourcing is a strategic process for a company to find and manage suppliers of logistics services to meet its supply chain needs, focusing on optimizing cost, efficiency, and control over freight movement.
How It Works
Key Aspects of Logistic Sourcing
Finding the Right Partners: This includes sourcing carriers for transportation, freight forwarders, and warehousing providers that can manage goods in transit and at their destination.
Key Aspects of Logistic Sourcing
Finding the Right Partners: This includes sourcing carriers for transportation, freight forwarders, and warehousing providers that can manage goods in transit and at their destination.
Strategic Vendor Selection: Instead of just finding the lowest price, companies look for partners who offer reliable service, the right route, and the appropriate shipping method for their specific goods.
Supply Chain Visibility: Logistic sourcing aims to improve visibility into the supply chain, allowing companies to monitor key milestones and control costs from the origin of goods to the destination.
Global Complexity Management: As supply chains become more complex with global sourcing, logistic sourcing helps manage the increased demand for control and efficiency in freight movement.
Cost and Time Optimization: A major goal is to find the most cost-effective ways to get products to their destination, while also ensuring they arrive on time to maintain customer satisfaction.
Technology Utilization: Software and AI tools are increasingly used to manage complex information and select the best logistics partners and routes, according to Alpega Group.
Key Aspects of Logistic Sourcing
Finding the Right Partners: This includes sourcing carriers for transportation, freight forwarders, and warehousing providers that can manage goods in transit and at their destination.
Strategic Vendor Selection: Instead of just finding the lowest price, companies look for partners who offer reliable service, the right route, and the appropriate shipping method for their specific goods.
Supply Chain Visibility: Logistic sourcing aims to improve visibility into the supply chain, allowing companies to monitor key milestones and control costs from the origin of goods to the destination.
Global Complexity Management: As supply chains become more complex with global sourcing, logistic sourcing helps manage the increased demand for control and efficiency in freight movement.
Cost and Time Optimization: A major goal is to find the most cost-effective ways to get products to their destination, while also ensuring they arrive on time to maintain customer satisfaction.
Technology Utilization: Software and AI tools are increasingly used to manage complex information and select the best logistics partners and routes, according to Alpega Group.
How It Works
Assessment of Needs
The company first identifies its specific logistics requirements, such as the type of goods, the required delivery times, and the volumes needed.
Vendor Identification
They then search for potential logistics partners, which can include carriers, freight forwarders, and 3PL companies.
Evaluation and Selection
Vendors are evaluated based on factors like cost, service quality, reliability, and ability to provide the necessary visibility and control.
Contracting and Management
Contracts are established, and ongoing management ensures that the logistics partners are meeting performance metrics and contributing to supply chain efficiency.