3rd Party Logistics
Logistics as a discipline has its origins in 19th century military science. The military recognized the need to formalize procedures for the procurement, transportation, warehousing and maintenance of materials in order to maximize their resources. The civilian sector began to adopt these procedures in the 1950s, and logistics has now grown to become a $100+ billon dollar industry in the United States alone.
"The potential is immense for enhanced visibility, improved operations and overall reduced costs."
Today, most companies use logistics management as a tool to lower their total cost of ownership. A quality logistics provider such as Ardmore Logistics employs a combination of modern information systems and transportation expertise to reduce costs in the areas of inventory, personnel and transportation.
Typically, the product manufacturer manages transportation. The management and control of this transportation is referred to as "outbound" logistics. In contrast, the management and control of goods by the buyer or designated owner is referred to as "inbound" logistics.
When energy companies approach logistics, they concentrate on the inbound side of the equation. Utilities and generators purchase millions of dollars in material from thousands of vendors each year. Managing this inbound freight through a structured freight program allows companies to control this diverse flow of product. The potential is immense for enhanced visibility, improved operations and overall reduced costs.