2. A 3PL (third-party logistics) provider offers outsourced
logistics services, which encompass anything that involves
management of one or more facets of procurement and
fulfillment activities. In business, 3PL has a broad meaning
that applies to any service contract that involves storing or
shipping items. A 3PL service may be a single provider, such as
transportation or warehouse storage, or it can be a systemwide
bundle of services capable of handling supply chain
management.
3. Standard 3PL Providers
At this level, the 3PL company provides only basic logistics. This
involves the storing and transporting of your products, and some
distribution in accordance with your company’s requests.
Service Developer 3PL
In addition to the basic logistics services offered at the standard
level, the service developer 3PL offers support in IT, security, and
product tracking. This means they can further ensure the delivery of
your package is safe and on time.
4. Customer Adapter 3PL
Customer adapter 3PL’s are different in that they take over
and run the existing logistics operation from the partner
company rather than creating their own.
Customer Developer 3PL
At this level, the customer developer 3PL will not only
inherit the logistics operation of their partner company,
but they will also adapt their own systems.That means
that the 3PL in essence becomes the entire logistics
department as opposed to simply offering services.
5. Save Time And Money
Being more efficient in terms of time and money is a major benefit that 3PL
providers can offer to organizations. By not having to spend money on
building warehousing, hiring additional labor, facilitating transportation, and
installing various technologies, companies can reduce their costs drastically,
while simultaneously freeing up more time to focus on core business
initiatives.
Market Expansion
One of the advantages of working with a 3PL provider is the ability to easily
position your supply chain in markets where you don’t have an established
presence. Having access to distribution centers and warehouses in various
regions allows companies to grow in new areas by being able to ship goods
efficiently to anywhere in the world.
6. Resource Network
Third party logistics providers have a vast resource network available that
provides advantages over in-house supply chains.With access to a 3PL
provider network, supply chains can be expanded quickly, efficiently, and
in a cost-effective manner.
Scalability And Flexibility
Depending on what your needs are, 3PL providers have the ability to scale
space, labor, and transportation based on the fluctuation of your
inventory.Whether you’re dealing with seasonal inventory or new
product releases, 3PLs can help provide adequate space and resources
between your busy and slow times, giving you maximum amounts of
flexibility during any time of the year.
7.
8. Reach new markets
Gain an experienced local partner in a new market
Take advantage of existing logistics infrastructure
Better utilize economies of scale
Gain a turnkey customer service or returns system
9. Lose skills and infrastructure you may want to develop
Have a hard time finding find a trustworthy 3PL
Sacrifice some control of your image and customer service
Send out your inventory to a relatively unknown third party