Role of Third Party Logistics in Supply Chain Management

Role of Third Party Logistics in Supply Chain Management

Role of 3PL in Supply Chain Management

3PL or third-party logistics is a system where a business outsources its distribution process to other logistics companies (third party). Working with a 3PL means your business can expand the customer base, create positive experiences for them, and step up into new markets. This cooperation improves the supply chain and makes business more competitive.

The role of third-party logistics in supply chain management is to use their knowledge and experience to control all the transportation aspects of a business. Adding the warehousing and wide network of carrier contacts makes 3PL a very useful ally.

The main services that 3PL can handle with ease:

• Storage. They will take your goods and store them at their warehouses or shipping hubs.
• Order organizing. If you receive an order, 3PL will take the goods and organize shipments for each client.
• Packaging. Received goods are fully packed and prepared to be shipped by the 3PL company.
• Delivery. Once the order is ready, it will be delivered right to the client’s destination. As 3PLs work with numerous carriers across the country, there will be no problem with interstate delivery.
• Returns. Many 3PLs also offer this service. When a client wants to return a product, 3PL handles its delivery back to you.

How Does Logistics Affect the Supply Chain

A supply chain can not exist without logistics. You need raw materials to be delivered to manufacturing facilities to make goods. You need goods to be delivered to warehouses or clients’ homes. You need a well-adjusted process that controls all of the freight moving inside your business. That’s why logistics is important, and third-party logistics companies can do it for you.

Delta Express can become your logistics partner and handle all your trans