DAMCO (The Maersk Group)-Company profile, Business Overview, Financial Performance, Operating Segments, Strategic Moves, and Competitive Intelligence Report

Third Party Logistics (3PL) is the function by which a manufacturer outsources activities related to logistics and distribution. Often a 3PL company can go beyond just logistics and distribution and can provide specialized services such as inventory management, cross-docking, door to door delivery and packaging of products. The market for this service is expected to witness growth at good pace owing to its use in todays competitive environment. Moreover, the demand is expected to rise due to increase in the focus of manufacturer and retailers on their core business (known as core competencies) and subcontracting activities, such as logistics where they have less expertise. Thus, the increase in the competition has diverted the focus of manufacturer to promote respective specializations in production and distribution.