3PL: Flexibility and Efficiency Gain

 

 

There are various types of third-party logistics (3PL) providers, so you have flexibility when seeking services. These firms have different specialties to help you manage your supply chain. For example, 3PLs can handle such tasks as warehousing, transportation, delivery, and design. By utilizing third-party courier companies, freight forwarders, transportation services, and logistics-assistance providers, you are setting your company up for success.

Categories of 3PL Providers

There are four categories into which these providers fall, which are:

• Standard: Standard 3PL providers take care of activities such as warehousing, picking up, packing, and distributing.
• Service Development: This category of provider offers services such as tracking, tracing, cross-docking, packaging, and providing security.
• Customer Adapter: At the request of the customer, this provider completely oversees a business’s logistics activities.
• Customer Developer: This is the highest level with the most comprehensive oversight.

Advantages of 3PL Providers

There are several advantages of using the services of 3PL providers. Because they have expertise in handling logistics, they are able to streamline management and improve supply chain flow. Some of the pluses of turning to these professionals include:

• Save time and money: The main advantage of hiring logistics providers is that they are competent. Because of their extensive knowledge base, equipment, and capabilities, they are able to save a company time and money.
• Focus: When an owner/manager of a company turns logistics over to a 3PL provider, he or she can focus on running the business, which can result in higher quality products and services.
• Flexibility: 3PL providers have access to more equipment, resources, and workers in a wider geographical area, so have more flexibility to get the job done.
• Lower capital outlay: When businesses bring in 3PL providers, they can leave the transportation and warehousing to them. This translates into a lower capital outlay, because businesses do not have to buy their own trucks and run their own distribution centers.

Outsourcing an organization’s logistics can be a wise alternative to trying to handle everything in-house, no matter which type of provider is selected. By bringing in a 3PL provider, companies gain flexibility and get the job done more efficiently.

 

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