WHAT IS 3PL – THIRD PARTY LOGISTICS
What is 3PL and is it good for your business? Check out our new post where we’ll look closer to it and find out.
What is 3PL – Third Party Logistics
What is Third Party Logistics
Third party logistics is a service that you can use when you don’t want to be bothered with transportation problems. The terms fulfillment center and fulfillment warehouse are interchangeable when referring to third-party logistics, or 3PL. Many of the services offered by 3PL providers are also provided by order fulfillment businesses. Among these services are:
- Inventory control
- Receiving and shipping
- FTL and LTL transportation
- Picking and packaging
- Kitting and customizing
- Reverse logistics (returns)
An eCommerce fulfillment firm is a third-party logistics provider. It offers every service you require to contract out your logistical operations.
3PL Logistics Process Definition
Here is an illustration of a 3PL configuration in action: A publisher of books employs authors, editors, and graphics designers to make publications, yet it might not wish to manage customer ordering or shipping. The book publisher, on the other hand, utilizes a distribution center to handle online orders and a trucking company to transport its freight. Both the carrier and the fulfillment center serve as 3PL suppliers. The fulfillment and shipping of book orders can also be handled by a single 3PL supplier.
The book firm may more effectively control expenses by working with a 3PL provider to employ supply and distribution services just as needed, allowing it to concentrate on what it does best: publishing books.
What is the Difference Between 3PL and LLP
Third Party Logistics, or 3Pl, is a type of supply chain system organization that functions as a third party by outsourcing the production of goods, the manufacture of clothing, and the fulfillment of services. In essence, it gives you access to 3Pl experts who specialize in international services, just as a doctor can assist you when you’re ill and a lawyer can assist you when you have legal issues.
If you need to send anything or understand the logistics for your organization, 3PL can assist you. 3PL may add a lot of value to your company in areas where you might not be strong, such as shipping, freight inventory, management, and many other areas.
LLP on the other hand.
Lead Logistics Provider, or LLP, is another name for fourth party logistics. These services companies analyze your supply chain. LLP acts in a supply chain management capacity. They have extensive supply chain management responsibilities and are experts in their field.
However, 4PL offers consistent services and develops into a trusted partner with their clients. 4PL is a huge umbrella of sorts. They manage transportation, shipments, inventory, merchandise, and a significant quantity of data on higher organizational levels.
3PL vs Freight Shipping
Because they frequently collaborate, the lines between 3PL providers and freight forwarders can occasionally become hazy. To facilitate the movement of freight, many 3PLs work in tandem with freight forwarders, and some freight forwarders may suggest reputable 3PLs to their customers if they want more in-depth inventory support.
By offering a broker-like service exclusively for moving cargo, usually in bulk, from point A to B, freight forwarders set themselves apart from other shipping companies. They are the middleman who are experts in organizing everything from scheduling cargo space to making insurance claims, but they typically don’t go beyond this. This implies that even if you employ a carrier, you are still in charge of various tasks such as picking and packaging, inventory control, and space planning for your warehouse.
The distinctive quality of 3PL providers is that they offer complete, end-to-end supply chain assistance. They are able to oversee and run every step of your supply chain, from receiving your items to making sure they reach your end users or merchants. This comprises a variety of supply chain components, such as storage facility, picking and packaging, shipping, and tracking. A 3PL will offer the same advantages as a freight forwarder while also allowing access to more services, giving a product firm the freedom to choose the level of assistance that will work best for them.
Please fill out the form and one of our experts will contact you as soon as possible.