Largest third party Logistics companies

A flurry of major service

Commercial companies are playing a growing role in managing the Army's supply chain. The author offers some ideas on how best to use them in a theater of operations, particularly when the risks are high.

One important trend in Army logistics today is the increasing use of third-party logistics companies to assist in distributing goods to installations in the continental United States (CONUS) and overseas. This trend also is evident in the rest of the Department of Defense. The Defense Logistics Agency (DLA) and the Army Materiel Command (AMC) both use third-party logistics companies as primary sources of support to deliver items to military installations in CONUS and to parts of the world where there is no conflict. The U.S. Transportation Command (USTRANSCOM) uses third-party logistics companies to move items throughout CONUS and to overseas airports and seaports of debarkation. As the Army's force structure continues to shrink and the demand for force projection and sustainment rises, the use of third-party logistics companies will only grow.

What do we mean by a third-party logistics company? A third-party logistics company is a private firm that provides logistics services under a contract to a primary manufacturer, vendor, or user of a product or service. It is called third-party because the logistics provider does not own the product but participates in the supply chain at points between the manufacturer and the user of a given product. The third-party logistics company can perform any or all logistics functions that exist between the manufacturer and the user, including—

  • Warehouse management.
  • Inventory control.
  • Inventory forecasting.
  • Distribution management.
  • Inventory scheduling.
  • Order fulfillment.
  • Supply-chain management.
  • Client invoicing.
  • Processing of loss and damage claims.
  • Radio frequency (RF) tag tracking.
  • Bar code tracking.
  • Handheld keypad tracking.
  • Repackaging and relabeling of shipments.
  • Information technology support.
  • Motor transport.
  • Rail transport.
  • Ocean cargo transport.
  • Air transport.
  • Shipment consolidation.
  • Product return and retrograde.

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Beyond retail, we also saw increasing traction in larger enterprise class accounts, including an enterprise wide win at a Top 10 U.S. bank, and initial deployments of one of the world's largest logistics companies and a global auto manufacturer.

Navios Maritime Holdings Inc.