Third Party Logistics is a business-to-business e-commerce platform. The third party logistics (3PL) industry refers to the whole process of sending goods from one location to another by a service provider such as a trucking firm or airline. Third party logistics providers have disrupted the traditional supply chain by providing more flexible and efficient delivery options for businesses across several industries.
What exactly does a 3PL do?
A 3PL is a company that acts as an intermediary between supply chain companies and their customers. The company takes on the role of storing inventory and providing logistics services. The following are some of the services offered by 3PL.
Supply chain management. A 3PL handles the entire tracking and managing inventory, from order placement to delivery. In addition, they can also provide customer service and maintenance logistics operations in the logistics industry.
Shipping. A 3PL will help manage shipping costs by offering warehouse space, freight services, and transportation options to customers. They can also handle customs issues through partnerships with customs authorities in different countries.
Order fulfillment. A 3PL can also fulfill orders directly to retailers, customers’ warehouses, or distribution centers. This way, you don’t have to worry about placing your orders or managing shipments for each item separately (which can become quite messy).
What specialist services does a 3PL offer?
A third-party logistics (3PL) company handles the end-to-end process of moving goods from the point of origin to customers. They provide warehousing, storage, and distribution of goods for companies in the same way that a traditional 3PL would do it. Still, they offer additional services like fulfillment centers, fulfillment houses, express delivery services, and third-party logistics providers.
Third-party logistics is the middleman between manufacturers and retailers. It’s an essential part of the supply chain because it takes products from manufacturers directly to retailers without passing them through wholesalers or retail stores. If there is no 3PL in place, then manufacturers must rely on distributors or retailers with no distribution center space. The result can be lots of delays and frustration for all parties involved.
