Question

what is a 3PL provider and what services do the provide? What are the advantages of using a 3PL?

Answer 1

3PL provider:

A 3PL (third party logistics) is a provider of outsourced logistic servicesThis involves the management of resources andt the way they are moved according to the requirements.They are specialized in integrated operations,warehousing and transportation services and they customize based on the customers need and market conditions.

They go beyond logistics and provide value added services related to production or procurement of goods

Services provided by them:

-Transportation or freight management services(inckudes transportation of resources from one to another)

- Warehousing

-Distribution management.They manage the distribution of goods to customers according to their needs

-Inventory management: They manage the inventory stocks of raw materials and the finished goods until they are transported

-They also provide shipping process from beginning to end

-They also provide freight payment,cost accounting and tools for managing,tracking the inventory

Advantages of using a 3PL:

-They have a vast resource network available that provides advantages over inhouse supply chains.Each step of supply chain can be made efficient and cost effective

-Outsourcing logistics will save lot of time and money .It eliminates the need to invest separately in warehousing,transportation etc.All are done through this 3PL provider This reduces the risk

-They have the industry best practices and stay upto date with the latest developments in technology.They are expertised with just in time practices so that correct amount of inventory is shipped when and where it is needed

-The benefit of 3PL provider is the ability to scale space,labor and transportation according to inventory needs.They also provide flexibility to use more resources and space when needed

-They provide continuous optimization and make improvements in each link of the supply chain.They continuously make improvements in reducing wait times,making more profits and improve customer service