This is a Mini Project on Third Party Logistics (3PL). I covered important information including meaning of 3PL,its types . Advantages and Disadvantages.

1. Project on Third Party
Logistics
DONE BY,
T.SANTHOSH KUMAR
MBA 2ND YEAR
SRM UNIVERSITY(RAMAPURAM)

2. THIRD PARTY LOGISTICS (3PL)

3. LOGISTICS
 Logistics is the process of planning
and executing the efficient
transportation and storage of goods
from the point of origin to the point
of consumption.
 Logistics management involves
identifying prospective distributors
and suppliers and determining their
effectiveness and accessibility.

4. Logistics vs. Supply Chain Management
 Logistics and supply chain management are terms that are often used
interchangeably, but they actually refer to two aspects of the process.
 Logistics is just one component of a supply chain. Logistics has to
do with the coordination and movement of goods. Supply chain
involves multiple facets such as operations and procurement that
keep a company running smoothly.

5. THIRD PARTY LOGISTICS
 Third-party
logistics in Logistics and Supply
Chain Management is an
organization's use of third
party businesses to outsource
elements of its distribution,
warehousing,
and fulfillment services.
 3PL is a service that allows you to
outsource operational logistics
from warehousing, all the way
through to delivery, and ultimately
enables you to focus on other parts
of your business.

6. Classification of 3PL Logistics
Warehouse and distribution based 3PLs
This is the most common type of 3PL—they store, ship, and handle returns.
Innovative warehouses can help you offer Amazon Prime-like shipping in two
days.
Selection Crieria
Warehouse Network
Pricing
Shipping carrier Rates
Insurance
Management Tools
Delivery Service levels

7. Classification of 3PL Logistics
Transportation based 3PLs
Specialize in the transportation between locations. For example, they
might transport inventory between your factory and warehouse or you
and your retail buyer.
Selection Criteria
1. Origin location
2. Destination location
3. Timeframes
4. Shipping methods
5. Service levels
6. Pricing and discounts

8. Classification of 3PL Logistics
Financial and Information based 3PLs
These firms provide industry-specific insight and can optimize complex global supply
chains. They also provide internal controls related to freight auditing, cost accounting,
and inventory management. Leading consultancies include Chicago Consulting and St
Onge. Apps like ShipperHQ can also add valuable insights.

9. Types of Third-Party Logistics Providers
 Standard 3PL
Provider
 Service developer
 The Customer
Adapter
 The Customer
Developer

10. Types of Third-Party Logistics Providers
Standard 3PL Provider
This is the most basic form of a 3PL provider. They would perform
activities such as, pick and pack, warehousing, and distribution
(business) – the most basic functions of logistics. For a majority of
these firms, the 3PL function is not quite their main activity.
Service Developer
This type of 3PL provider will offer their customers advanced value-
added services such as: tracking and tracing, cross-docking, specific
packaging, or providing a unique security system. A solid IT foundation
and a focus on economies of scale and scope will enable this type of
3PL provider to perform these types of tasks.

11. Types of Third-Party Logistics Providers
The Customer Adapter
This type of 3PL provider comes in at the request of the customer and
essentially takes over complete control of the company's logistics activities.
The 3PL provider improves the logistics dramatically, but does not develop a
new service. The customer base for this type of 3PL provider is typically quite
small.
The Customer Developer
his type of 3PL provider comes in at the request of the customer and
essentially takes over complete control of the company's logistics activities.
The 3PL provider improves the logistics dramatically, but does not develop a
new service. The customer base for this type of 3PL provider is typically quite
small.

12. ADVANTAGES OF 3PL
 Cost Reduction
 Scale up or down as
needed
 Provide a better customer
experience
 Test new Markets
 Mitigate Risk
 Gain instant expertise and
knowledge in the field
 Generate cost savings
 Flexibility

13. DISADVANTAGES OF 3PL
 Larger upfront Investment
 Hidden Responsibility
 Lesser Control
 More distance between you and your
product
 Trust Issues
 Communication Problems