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How Do Shoe and Apparel Companies Develop in Conjunction with 3rd Party Logistics

There are many logistics links in the shoe and clothing industry, involving product production, intermediate circulation, and consumers, requiring the participation and assistance of 3rd party logistics companies. At present, there are a large number of third-party logistics companies with different development levels. How to choose a suitable 3rd party logistics service provider has become an important test.

Independent of the producers and sellers, companies that provide customers with logistics-related services such as transportation, warehousing, and distribution are called “3rd party logistics service providers.”

3rd party logistics is the result of the further professional development of the logistics industry, and it is developing rapidly. By outsourcing the logistics business to a third party, it can help companies in the shoe and clothing industry reduce overall operating costs, reduce unnecessary investment, and enable them to focus on their main business and strengthen their core competitiveness.

Unlike ordinary consumer goods, the shoes and clothing industries have a wide range of products, which are highly cyclical and seasonal, and are heavily influenced by brands. Sales channel models are also changing, and they need to adapt to the development of multi-channel integration of online and offline. These put forward higher requirements for the operation of shoes and clothing logistics.

Therefore, how companies in the shoe and clothing industry can better interact with 3rd party logistics has become a link that needs to be broken.

The principles and standards for choosing 3rd party logistics

With the development of logistics specialization, the rise of new retail and the expansion of omni-channels, it will become more and more common for companies in the shoe and clothing industry to outsource some or all of their logistics services. At present, there are a large number of 3rd party logistics companies, and how to choose a suitable partner has become a problem.

In general, when choosing a 3rd party logistics service provider, you can refer to the following principles and standards:

  1. Strategic direction

Shoes and clothing industry enterprises and 3rd party logistics service providers should be a long-term strategic partnership, rather than providing temporary logistics services. Therefore, when choosing a 3rd party logistics provider, it depends on whether it focuses on the direction of logistics development, whether it is mainly engaged in logistics-related business, and regards logistics development as the company’s main strategy in the future.

  1. Intentionality

Intentionality is mainly to examine whether the 3rd party logistics service provider has long-term investment and the willingness to achieve a win-win result, that is, whether the 3rd party logistics is willing to actively make changes or adjustments to meet the needs of enterprises in the shoe and clothing industry.

In the process of cooperation between shoes and clothing industry enterprises and 3rd party logistics, strong intentions will play a key role and also the basis for cooperation between the two parties.

  1. Comprehensive

The third service must be able to comprehensively use its own resources according to the individual needs of customers, including its own warehouse operation capabilities, trunk transportation, as well as a complete network layout, good urban terminal distribution capabilities, etc., to conduct rational operations. This allows logistics operations to have the best cost, fastest speed, maximum benefit, best quality and higher safety factor.

  1. Scale

When choosing a 3rd party logistics service provider, you need to consider the size of the company. In addition to the annual business, it also depends on whether it has branches or offices in major cities across the country and its financial status is good.

3rd party logistics with a certain scale has a relatively higher degree of specialization, which will also guarantee the cooperation between the two parties.

  1. System management ability

The informatization level of 3rd party logistics, including warehouse management, visualization of cargo transportation, and transparency, is also one of the selection criteria.

It needs to have WMS, OMS, TMS, BI and other related logistics information systems, and at the same time it should have the ability to develop system docking, have the ability to interface with enterprise systems or have standard interfaces, and have a strong own IT team to provide customers with customization System services, a unified order interface, and a transparent order processing process.

  1. Successful operation case

Whether you have experience in warehousing management in the shoe and clothing industry, omni-channel warehousing management capabilities, and successful cases such as terminal distribution and inter-store allocation are also key factors that need to be considered.

The service provision of third-party logistics requires the collaboration of the entire team, and the ability of the team can be directly investigated through past successful operation cases.

  1. Cost control

The reason why companies in the shoes and clothing industry outsource logistics is to use professional third parties to meet their own business needs and achieve the best cost. 3rd party logistics must have strong cost control capabilities, and be able to help shoe and apparel companies reduce costs through the integration of integrated logistics, as well as optimization of processes, system information, and complete operation and management systems.

  1. Supply chain management level

The demand for 3rd party logistics companies in the shoes and clothing industry is increasing, and they need to have the ability to integrate resources and omni-channel management, that is, the ability to conduct supply chain management.

The third party must be able to continuously put forward supply chain optimization plans and suggestions for the shoes and clothing industry enterprises through logistics operation analysis, and at the same time can also cooperate with the shoes and clothing industry enterprises to participate in the supply chain improvement, and have the integrated logistics capability from factory to store.

  1. High level of service

The logistics and distribution of the shoes and clothing industry will directly face consumers or stores, and their needs are ever-changing. 3rd party logistics companies need to fully consider the actual needs of customers, especially special business needs. For example, shopping malls have a lot of passenger traffic during peak hours, and delivery services need to be avoided during this time period; sometimes customers will temporarily adjust the delivery time or logistics delivery method. It also requires logistics service providers to have a quick response customer service team that can make timely adjustments.

When choosing a 3rd party logistics, it depends on whether its operating mechanism is flexible and whether it can be changed at any time according to changes in customer needs, so as to meet the various service requirements of the business.

After the shoes and clothing industry companies are measured by the above-mentioned principles and standards, they still need to use a scientific and rigorous supplier selection process to select, and finally choose a relatively suitable company to reach a cooperative relationship.

As far as 3rd party logistics is concerned, in the future, it is necessary to keep up with the footwear and clothing industry enterprises, while improving basic capabilities, strive to adapt to the online and offline integration of the shoes and clothing industry, and carry out service innovations for the needs of customers in the shoe and clothing industry.

3rd party logistics companies in the shoes and clothing industry will advance and retreat and develop together, which will be a common mode in the shoes and clothing supply chain and logistics management process in the future.

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