Applications designed to manage and optimize logistics operations outsourced to third-party providers fall under the umbrella of this technology. These systems facilitate the coordination of various supply chain activities, including warehousing, transportation, and order fulfillment, between businesses and their external logistics partners. For example, a company that sells goods online might use such a system to manage the storage and shipping of its products through a specialized logistics company.
The utilization of these technological tools offers several advantages. They enhance visibility across the supply chain, enabling better tracking and management of inventory. Furthermore, they streamline communication and collaboration between businesses and their logistics providers, leading to increased efficiency and reduced costs. The development of these systems reflects a growing trend towards specialization and outsourcing within the supply chain industry, driven by the desire for greater operational effectiveness.