When you are dealing with major companies as a partner or supplier, you will notice they may be using a free on board (FOB) basis. It implies that they will move the products to the point of shipment and after that, you shall be liable for the cost of shipment to the destination.

On the other hand, it may be your business that wishes to use the condition to lower your cost of operations. Irrespective of the arrangement, buying and selling goods will often require a form of shipment arrangement to ensure the products reach the destination in a timely and safe manner.

You might have to consider an agreement with a third-party logistics provider to handle your shipments and those of your clients. Here are advantages:

Increase Competitiveness without Resources

In the past, you had to have your fleet and use its effect to be competitive. Today, you can use third-party logistics to do the same and save money. You do not have to invest in a new fleet that would tie your working capital.

Instead, you can re-channel the money to other ventures for the business while still providing the logistics functionalities needed to move things forward. The 3PL company comes in between the seller and buyer and provides the logistic support at either the buyers or seller’s cost and ensures the transaction and performance of the contract occurs as planned.

Rely on Experienced Service Providers

If you were doing business in Melbourne, but your company has …

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