A 3PL is a professional provider of services that offers a wide range of services, including warehousing and storage, wholesale distribution, retail, transportation, and retail, to meet the needs of their customers. Third party logistic service providers provide end-to-end management of the business operations that are outsourced by their clients. The 3rd party logistic service provider plays a crucial role in supply chain management as well as other logistics businesses around the globe related site.
What do third-party logistic Service providers think about their customers?
In the service level agreements and contracts signed by both parties, 3rd party logistics providers’ services are carefully drafted and documented. These documents cover details such as scope, duration, cost and other important aspects.
What are the main services provided by a third-party logistics provider?
In the supply chain industry, 3PL companies offer a variety of services. The areas of service are:
Procurement is the process of ordering and receiving goods at multiple locations in the supply chain industry
Order Fulfillment: Collecting orders from prospective customers. This process includes picking and packing the orders that will be delivered and fulfilled.
Storage: Provisions for the storage of cargo and goods at warehouses and storage facilities in the same location or elsewhere.
Transportation: The arrangement of consolidation, deconsolidation and transportation of goods. 3PL service providers provide a wide range of services including IT system integration and reverse logistics.
What is 3PL procurement and receiving service?
The procurement process is the ordering and receiving of orders and cargo according to the existing demand from upstream customers within the supply chain industry. These services are:
Inventory Management
Stock levels are identified by manufacturers and distributors in order to manage them.
Transport of goods from the supplier to the warehouse 3rd party logistics service provider
Receiving goods in the warehouse.
Management and storage for ordered goods
What is third-party logistic order fulfillment services?
Order management, fulfillment and distribution are the primary responsibilities of third-party logistic service providers. Order fulfilment services include:
Receiving requests and orders from customers and members of their group.
Inventory Management
Stock management when orders are received
Packing ordered goods to begin the shipping process
-Arrangements for loading and supplying the ordered goods at their destinations.
Order fulfillment, picking and packaging happens in multiple networks of the supply-chain industry. This process is then carried out in the retailing stream, which includes e-commerce.
What is 3PL storage and warehouse services?
The main functions of 3rd party logistics service providers include managing the storage and distribution of products from the warehouse to the customer.
Storage services provided by 3rd party logistics service providers include:
Priority is given to public storage that meets the needs of customers.
Contractual storage is allocated to prominent clients according to their future demands.
Specialized Storage Facilities for many industrial products such as chemicals, food and products that are required to be stored under certain conditions.
High-security storage facilities for valuable, volatile, and subtle loads.
In-house warehouse tracking and positioning of easy goods
Auditing of packages and maintaining receipts simultaneously.
Stock Management and Distribution Ordered Goods
What is 3PL Distribution Services?
Distribution is the most important service offered by third-party logistic service providers. Distribution involves the transportation of goods to and from storage facilities of third-party logistic service providers.
The services include:
Intermodal Transportation, cross-docking and drayage are all part of the distribution process.
FTL, LTL and FCL are other areas of distribution.
Optimal fleet organization for efficient delivery of goods
GPS and IOT devices can be used to track parcels.
Deconsolidation of goods and consolidation.
What other services are offered by 3rd party logistics service providers besides the ones listed above?
Third-party logistics companies offer a variety of supplementary services, including:
Freight forwarding: The logistics service providers usually outsource the process of organizing and allocating the distribution of goods to freight forwarders. A freight forwarder can be compared to a third-party logistics service provider. Freight forwarders manage rental spaces with logistic companies. Freight forwarders are also responsible for managing relationships with clients and service providers to create schedules and progress report.
Reverse Logistic: This reverse logistics allows customers to return their products to the source if the benefits and services offered by them are not satisfactory. The reverse logistics helps manage discarded inventory, and schedules the optimal disposal.
Environmentally controlled freight:The goods that need to be delivered within a temperature-controlled environment are also managed and handled by third-party logistic service providers. Temperature-controlled trailers are fitted to the specialized vehicles. They regulate humidity and light levels, ensuring that the goods are preserved until they arrive at their destination.
Consolidation & Deconsolidation
Consolidation is when a third-party logistic service provider consolidates goods from multiple sources into a single shipment to optimize transportation. Deconsolidation involves the division of goods into separate shipments that are intended to be delivered at different destinations.