Third party logistics (3PL) involves outsourcing a company's supply chain and logistics operations to transport products to customers. A 3PL receives, stores, packs, and ships products, and may provide additional value-added services like inventory management and assembly. Key 3PL services include receiving shipments, picking and fulfilling orders, packaging products, shipping via carriers, and handling returns. Using a 3PL can help companies reach new markets by leveraging an experienced local partner, but they lose some control and may have difficulty finding a trustworthy provider.

1. A.VIGNESH
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2. 3PL
• Third party logistics is outsourcing the supply chain
operations and logistics to get a company’s products to their
customer.
• Most basically this includes receiving, storing, packing, and
shipping services.
• Some 3PL companies also provide other logistics services,
referred to as value added services. These include inventory
management, kitting and assembly, postponement packaging,
and others.

3. SERVICES 3PL PROVIDE
• RECEIVING
• The first step in getting inventory to the 3PL so that they can fulfill orders and
ship.
• A 3PL’s warehouse will receive your company’s inventory and then store your
products before they go out to a customer. The 3PL will need to coordinate the
inbound shipments with the company who often use freight forwarders, a person
or company who helps manage and organize the bulk shipments from the
manufacturer to the distribution center.
• PICKING
• The next step happens when a customer places an order, which is known as
picking. This is really where the 3PL fulfillment process begins. Once an order is
submitted it is sent to the warehouse where it is being stored. The types of orders
vary in size, complexity, and pick type so the 3PL you decide to choose needs to
support all types of orders. For example, an ecommerce or business-to-consumer
order is vastly different than a business-to-retailer (or business) order.

4. • PACKING
• Once an order is “picked”, the products in the order are organized and
prepared for packaging. A 3PL will work with the seller during the initial
setup process to identify the best way to package the product to ensure
the seller’s products are secure, presentable, and packed in the most cost
effective way possible.
• SHIPPING
• Shipping can be the most complicated and expensive aspect of the
fulfilment process. This is due to the large number of carriers, numerous
shipping options per carrier, shipping cut off times, and shipping
locations. An experienced 3PL can layout a clear shipping strategy and
provide significant savings on the shipping costs.
• RETURNS
• Whether the item is ordered by mistake, damaged during the shipping
process, or other various reasons, returns are part of the shopping process
and an important part of the customer experience.

5. 3PL VS 4PL

6. ADVANTAGES OF 3PL
• Reach new markets
• Gain an experienced local partner in a new market
• Take advantage of existing logistics infrastructure
• Better utilize economies of scale

7. DISADVANTAGES OF 3PL
• 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

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