What Are Third Party Logistics Providers?

Third Party Logistics Providers are firms that ensure customers of outsource by providing services along with their advanced knowledge in logistics and management. Third party logistics providers or firms that deals with logistics and management makes it easy for businesses to focus on their main goals without having to worry about transportation of goods or end line of Dunex productivity as well as distribution. Like said, third party logistics providers will monitor and be in charge of warehouses, transportation of goods, and operation so that businesses won’t have to worry about these factors. These firms would also have to consider market trends to meet customer’s demands and needs; it also has to make plans and adaptations for specific businesses in order to strike for profit. Most importantly, these firms have to be closely aware of delivery service requirements for products and services. Most third party logistics providers add up other services dealing greatly with productivity, operation, transportation, and other services dealing with integrating parts of the supply chain which then makes it a lot easier and effortless for businesses to focus and to leave these factors to these firms that are advanced and ensured.

Services

Like said above, third party logistics providers provide services dealing with transportation, operation, and mainly anything that involves logistic management. Third party logistics providers are well educated and are experienced with logistic management which ensures customers and businesses their safety and is something that will minimize stress and will enhance quality in other areas of business. Other services include:

  1. Transportation
  2. Warehousing
  3. Cross-docking
  4. Specific packaging
  5. Security system
  6. Advices and plans
  7. Managerial tips and suggestions

Types of 3PL Providers

There are different categories of 3PL providers which have different jobs and responsibilities to enhance quality and to monitor as well as cover all areas of logistics management. There are freight forwarders, courier companies, as well as other companies that offer services dealing with transportation and deliveries. The four main categories and functions of third party logistics providers include:

  1. A standard 3PL provider: these providers perform standard and basic tasks such as pick packing, warehousing, and distribution of products.
  2. Service developer: these providers will offer customers advanced value-added services such as tracking and tracing, cross-docking, specific packing, and providing a unique security system.
  3. The customer adapter: Those providers in this position will have to monitor and take charge of all logistic activities. Most of the time, these people are requested by the customers but they are not included normally in some cases.
  4. The customer developer: This position is the highest among other positions with respect to its activities and processes. People in this position will have to emerge themselves and be fully responsible of almost all logistic services of a specific business. Also, they have to look deeply in small details and make sure everything will be done by the time it has to be done.