When a company designs and manufactures products, the products must often be sent and transported over vast distances to the purchasers or distributors of the products. Establishing effective shipping methods and supply chains can be very complicated and difficult. Thus, many companies employ logistics alliances to provide assistance in establishing supply chains for the company.
A logistics alliance is a group or team of trading experts who work together to help companies competently and successfully manage and deliver their products. Companies can hire or join logistic alliance groups to empower the alliance group to provide assistance, establish supply chains and offer business advice for the company.
A primary function of most logistics alliances is to help companies organize and establish supply chains to most effectively and efficiently deliver products. Thus, many alliances have advanced knowledge and skills regarding the shipping and handling aspects of business. Some alliances help businesses ship goods through their close relationships with certain transportation services, others assist companies by connecting them with customers in various different regions, and some alliances help businesses plan, schedule and supervise delivery services.
Many logistics alliance groups specialize in certain types of products. These alliances tend to focus only on the specific category of products for which they specialize. For instance, The Perishable Logistics Alliance (PLA) is an alliance that helps many businesses across the globe effectively ship perishable cargo, which are products that are temperature sensitive and that can lose their quality if not properly maintained during the transportation delivery process. Products that can be handled by the logistic services of the PLA include live animals, fruits and vegetables, meat and fish, pharmaceuticals and high-tech equipment.
In addition to providing chain supply services, many logistics alliances also help companies to manage the delivery process. Alliances can help with inventory management, such as inventory planning, inventory optimization and warehouse optimization. Logistics organizations can also offer businesses planning strategies to help them design, develop and implement policies that relate to product management or shipping methods. Additionally, some alliances provide project management assistance by aligning the projects with the appropriate business requirements, reshaping organizations and developing new staff programs to form more productive and motivated teams.