What is 3PL & Benefits of 3PL Services

1. What is 3PL & Benefits of 3PL Services?

2. What is 3PL Logistics?
Council of Supply chain Management has defined 3PL as: “A person who
solely receives, holds, or otherwise transports a consumer product in the
ordinary course of business but who does not take title to the product.”
Many people assume that third party logistics companies got their start in
1970s, that’s only when they got their name. The company with no logistics
department usually take help of the 3PL company. In turn, the 3PL
company performs particular parts or all logistics related activities for the
client.

3. Benefits of 3rd Party Logistics Providers
One of the main functions of a 3PL logistics company is to manage the safe storage
of goods until they are needed elsewhere. There are lots of benefits of 3rd party
logistics service provider, we have mentioned below:
● Cost Saving
Storage and shipping tasks are some of the biggest costs associated with e-
commerce retailers. When they work with a third party logistics company, the need
for storage space, and the cost to rent or maintain it, along with overhead
expenses. This can be eliminated or reduced. When it comes to shipping, 3PL
companies also have relationship with carriers which results in discounted pricing
that’s passed on to customers.

4. ● Technology Access
A 3PL can take responsibility and costs associated with investing in
technologies that improve your operations. These technologies are able to
share with more than one customers. They can deal with the investment sustain
maintenance costs, passing all the benefits on to you. There are below
beneficial technologies provided by 3PLs:
● Transportation Management Systems (TMS)
● Real-time Order Tracking
● Route and Consolidation Optimisation Tools
● Data Analysis and Reporting Tools
● Freight Audit and Payment Solutions

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