Have you ever wondered what 3rd party logistics is all about? Also known as 3PL, third party logistic companies offer different types of storage, transport, distribution, and fulfillment services.
As a customer, your work is to outsource the above type of operations to 3PL companies and wait for them to fulfill all your expected management needs. 3PL companies are an important link in the supply chain management.
How do you know the services being offered by a 3PL company?
All services provided by 3rd party logistics are usually indicated and explained in the contract agreement. The documents give details of the cost, duration, and any other important information regarding the services.
Main services offered by 3PL companies
The type of services varies depending on your needs. Although 3PL companies specialize in different areas of the supply chain, most of them offer the following services:
• Procurement: This includes placing orders and receiving goods from other areas of the supply chain
• Order fulfillment: Accepting orders from you, sorting, and getting them ready to be shipped.
• Storage: Offering temporary storage for goods brought in the warehouse
• Transportation: Making arrangements for consolidation, deconsolidation, organization, and transportation of goods from the warehouse.
3rd party logistics also provide other supplementary services such as inventory management, reporting, IT systems integration, and many others.
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