A third-party logistics or 3PL provider gives the outsourced logistics services. These usually encompass anything which involves the handling of different aspects of procurement & fulfillment activities. Plus, in the business world, it has a vast meaning which applies to some service contract which involves shipping or storing products. A third-party logistics service can be one provider, just like warehouse storage or transportation, or this might be some system-wide services that can handle supply chain management.
Third-party logistics providers such as 3PL Links provide their clients with the following services, along with all customized services for clients. These rely on the clients’ product, size, and requirements:
- Freight and Transportation Services
- Warehousing solutions
- Distribution/Shipping management
After knowing about the third party logistics services, let us look at its different forms. According to Alfredsson and Hertz, you can categorize the third party logistics companies into any one of the below four kinds according to your requirements of the clients:
1. Service Developer Third Party Logistics
They provide logistics assistance of the standard 3PL with added management and infrastructure. Service Developers provide you product security, IT support, and product tracking. Due to this additional expertise and infrastructure, companies which hire Service Developer third-party logistics could make sure that the reliability and safety of their items.
2. Customer Developer Third Party Logistics
The customer developer third-party logistics wouldn’t inherit the logistics operation of its partner company; rather they would adopt its own systems. It means the third party logistics becomes the complete logistics department opposite to offering services.
3. Service Developer Third Party Logistics
This type of service generally offers added technological options along with standard services. The additional values might include boosted Customer Adapter, package tracking, and specialized packaging. The service providers take full control of the enhanced customer adapter.
4. Customer Adapter Third Party Logistics
The Customer Adapter third-party logistics completely operates the logistics for a hiring company. Such form of the 3PL does inherit operations that are related to logistics from a hiring company. This doesn’t make its own operations. The Customer Adapter third-party logistics might boost & upgrade the current infrastructure of logistics.
Non-Asset Based Logistics Providers
It is a new model for third-party logistics or IPL. It has been developed because of the technological advancements at large & the linked enhances in the inter-company communications & the supply chain’s visibility. There are several logistics companies which are doing their business in other countries as well. Hence, there’s a requirement of decreased costs, enhanced velocity, low level of risk, & increased visibility of the supply chains. However, to achieve all this, a general technological solution was actually called for.
Third-party logistics providers are a vital element of achieving merchandise from point 1 to 2. Different companies use the 3PL providers, and all of them actually rely on the particular requirements. A company might either manage half control over logistics or just give the entire control to the 3PL provider.