"Dial-A-Clutch came to us with an immediate need to establish a relationship due to a unique set of circumstances. åÊ From the initial phone call, we customized a solution, received inventory, and were filling orders in about a week." commented Tod Yazdi, a member of TAGG's management. åÊ "We are

Dial-A-Clutch, located in Delray Beach, Florida, has been serving customers in the southwest since 1995. åÊ Dial-A-Clutch is recognized for outstanding customer service, rapid order-turnaround and prompt delivery. åÊ The addition of a St. Louis based inventory management and order fulfillment center will allow regional customers to receive next-day delivery of parts ordered by 4:00 p.m.

A recent article in WorldTrade Magazine defines third party logistics (3PL) as:

"That part of the supply chain process that plans, implements and controls the efficient flow and storage of goods, services and related information from the point of origin to the point of consumption, in order to meet the customers' requirements."

The elements that make up the modern day third party logistics (3PL) industry continue to evolve and expand, as do the services logistics providers offer.

This expansion has been fueled by four dominate trends in the industry:

• The growth of e-commerce
• The rise of international trade; particularly container-based imports
• The increase velocity required to bring products to market
• The outsourcing of logistics functions

One key trend that has accelerated the logistics industry's growth and expansion more than any others: The general trend of outsourcing. In fact, the outsourcing trend is as much a cause of industry growth as it is a result of other trends.

More and more business owners and chief executives are deciding to turn over their supply chains to logistics experts who specialize in driving performance and efficiencies. åÊ So what factors lead to the decision to outsource?

Desire to save money.
Companies who outsource name cost savings as the number one reason to turn to a third party logistics (3PL). In fact, there are numerous areas a company can leverage a logistics partner to gain efficiencies.

• No need for a warehouse to store goods
• No need for forklifts and warehouse/inventory management systems
• Shipping costs become cheaper by pooling greater volumes
• Seasonality or volume spikes and dips become more manageable
• Staffing and human resource cost are reduced

Desire to handle their logistics needs better.
Outsourced distribution and order fulfillment is performed by an expert in the field who has the experience and the resources not only to do it better, but also cheaper. If you are not in the business to manage inventory, pick and pack, fulfill and process orders and manage returns, why not outsource to someone who is? Not only are costs reduced, but the level of customer service is increased.

Leverage technology.
It's difficult to keep up with the daily technology changes in today's distribution and order fulfillment. At it's base, real-time visibility in inventory and order status has become a standard. Third party logistics companies (3PL's) use cutting edge technology to reduce costs and streamline the order fulfillment process. It can be difficult and expensive to keep pace with the changing technological demands when it is not your businesses primary function.

Focus on your core strengths.
Business owners who have outsourced their logistics find that they can focus their company's efforts on activities in alignment with their core competencies. åÊ Simply put, outsourcing allows everyone to focus on what they do best. åÊ