What is third-party logistics in SAP SCM-ICH-SNI - Supply Network Inventory?

SAP Term: third-party logistics

• Component: SCM-ICH-SNI

• Component Name: Supply Network Inventory

• Description: Business model based on a long-term collaborative relationship between a manufacturer of goods and a third-party logistics provider that is regulated using a service contract.

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• Key Concepts: 
  Third-party logistics (3PL) is a term used to describe the outsourcing of logistics and distribution activities to a third-party provider. This provider is responsible for managing the entire supply chain process, from procurement and inventory management to transportation and delivery. 3PL providers are typically specialized in their respective fields, allowing them to provide more efficient and cost-effective services than companies that manage their own logistics operations.
  
  How to use it: 
  The SAP SCM-ICH-SNI Supply Network Inventory component enables companies to manage their 3PL operations more effectively. It provides a comprehensive view of the entire supply chain, from procurement and inventory management to transportation and delivery. The component also allows companies to track their 3PL providers’ performance, enabling them to make informed decisions about their supply chain operations.
  
  Tips & Tricks: 
  When using the SAP SCM-ICH-SNI Supply Network Inventory component, it is important to ensure that all relevant data is accurately captured and tracked. This includes information such as supplier performance, inventory levels, and delivery times. Additionally, it is important to ensure that all 3PL providers are properly monitored and managed in order to ensure that they are meeting the company’s expectations.
  
  Related Information: 
  For more information on third-party logistics and the SAP SCM-ICH-SNI Supply Network Inventory component, please refer to the following resources: 
  • SAP Help Portal: https://help.sap.com/viewer/product/SCM_ICH_SNI/7.0/en-US 
  • SAP Community Network: https://www.sap.com/community/topic/third-party-logistics.html