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The Function Of Third
Party Logistics Providers
Synchronized Supply Systems Ltd
http://synchronized.in
Introduction
 A third party logistics company is an independent business
that specializes in providing a specific type of...
Introduction
 Logistics providers like supply chain consultants and
couriers produce over $47 billion each year.
 Areas ...
Warehousing
 Many third party logistics providers offer some form of
warehousing.
 This means that a client business can...
Warehousing
The third party provider usually makes extensive capital
investments in the warehouse allowing for increased
...
Transportation
A number of third part logistics companies offer
transportation services. This is one of the most common
s...
Transportation
 Transportation does not usually include other services
such as warehousing or consulting.
 Transportatio...
Fulfillment
An increasingly popular type of third party logistics is
fulfillment. This is a version of warehousing.
Fulf...
Fulfillment
This is how orders are usually filled for ecommerce and
catalog companies.
The warehouse maintains pickers, ...
Fulfillment
Most will also provide shipping services through another
third party logistics provider. Fulfillment provider...
Logistics
 There are third party logistics companies that act primarily
as consultants.
 These companies do not maintain...
Logistics
The goal of these companies is to streamline the supply
chain and sometimes to develop an entire efficient supp...
Logistics
The knowledge and experience of these individuals usually
results in a collection of asset-based third-party pr...
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The Function of 3PL Providers

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The Function of 3pl providers

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The Function of 3PL Providers

  1. 1. The Function Of Third Party Logistics Providers Synchronized Supply Systems Ltd http://synchronized.in
  2. 2. Introduction  A third party logistics company is an independent business that specializes in providing a specific type of service to a larger client.  The majority of companies focus on one aspect of the supply chain such as shipping.  The purpose of a third party logistics provider is to improve the efficiency of a client and to help control costs.  This is done through the economics of scale.
  3. 3. Introduction  Logistics providers like supply chain consultants and couriers produce over $47 billion each year.  Areas like transportation and warehousing are growing annually at a rate of between 5 and 6 percent.  Third party logistics companies perform a number of different functions.
  4. 4. Warehousing  Many third party logistics providers offer some form of warehousing.  This means that a client business can hire the company to store products in a controlled facility that is managed by the provider.  This is an attractive option because it removes the need to lease a warehouse and pay employees who are only tangentially related to the core business.
  5. 5. Warehousing The third party provider usually makes extensive capital investments in the warehouse allowing for increased efficiency through modern technologies. Another advantage is that a provider might have warehouses in centralized areas that make shipping and receiving easier.
  6. 6. Transportation A number of third part logistics companies offer transportation services. This is one of the most common services provided. Transportation involves moving goods between two locations. This could be from a coastal port to a warehouse or from one retail store to another.
  7. 7. Transportation  Transportation does not usually include other services such as warehousing or consulting.  Transportation across different jurisdictions is normally an invaluable service since local businesses do not have the capital to invest in trucks and licenses that would allow for cross-country transport of goods.  Many transportation providers have large fleets of trucks available that can move goods between locations quickly and efficiently.
  8. 8. Fulfillment An increasingly popular type of third party logistics is fulfillment. This is a version of warehousing. Fulfillment means that a provider stores items in a warehouse and then assembles different collections of items in a box or other container.
  9. 9. Fulfillment This is how orders are usually filled for ecommerce and catalog companies. The warehouse maintains pickers, packers and other employees who can fulfill orders with a high level of accuracy and speed.
  10. 10. Fulfillment Most will also provide shipping services through another third party logistics provider. Fulfillment providers sometimes include value added services such as returns processing.
  11. 11. Logistics  There are third party logistics companies that act primarily as consultants.  These companies do not maintain assets like a warehouse or a fleet of trucks.
  12. 12. Logistics The goal of these companies is to streamline the supply chain and sometimes to develop an entire efficient supply chain for a new business. Supply chain consultants specialize in removing waste and overhead from the procurement, warehousing and transport of goods.
  13. 13. Logistics The knowledge and experience of these individuals usually results in a collection of asset-based third-party providers who can work together more efficiently than a group of random businesses assembled without the assistance of supply chain consultants.

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