Third party logistics

Third-Party Logistics 3PL and Supply Chain Consulting Division Asset-Based Logistics Provider Transportation is continuously changing, and it is essential that your logistics solutions provider arm themselves with best in class people, processes, and technology. We combine our numerous in-house assets with our robust outsourced provider networks. Besides reduced transportation costs, our approach also alleviates managers and executives of many potential supply chain issues such as freight routing, rate negotiating, visibility and multiple carrier-coordination tasks, allowing them to focus on their planned objectives. Our strategic partnerships allow for reliable, efficient planning and movement of your product via Land, Rail, Ocean, and Air.

Third party logistics

DLS Third Party Logistics - 3PL

Dave Third party logistics Share this item with your network: A 3PL third-party logistics provider offers outsourced logistics services, which encompass anything that involves management of one or more facets of procurement and fulfillment activities.

In business, 3PL has a broad meaning that applies to any service contract that involves storing or shipping items. A 3PL service may be a single provider, such as transportation or warehouse storage, or it can be a systemwide bundle of services capable of handling supply chain management.

How third-party logistics work Here is an example of how 3PL arrangements operate: A book publisher hires writers, editors and graphic designers to produce publications, but it may not want to handle the consumer ordering process or transportation of book shipments.

Instead, the book publisher uses a fulfillment center to process its online orders and hires a trucking carrier to haul its freight. The fulfillment center and carrier both act as 3PL providers. By contracting with a 3PL provider, the book company can use supply and distribution services only when needed, thus controlling costs more effectively while focusing on its core competency of producing books.

The term 3PL got bandied about more by consultants and during conferences in the s, likely tied to evolving technology, including the rise of the internet. An overview of levels of logistics service.

The growth in online sales and increasing consumer demand for faster delivery and lower prices have spiked demand for 3PL services. Meanwhile, internet of things IoT technology has improved tracking metrics for trucking and other carriers.

Bonded Logistics - 3PL | Third Party Logistics | Charlotte, NC

The benefits of 3PL The primary benefit of using a 3PL service to handle logistics, such as packaging, warehousing, fulfillment and distribution, is cost savings -- for example, not having to maintain a warehouse or the staff to monitor supply chain operations.

A 3PL service likely offers better performance on efforts such as shipping while also enjoying an easier ability to scale its operations. If the publishing company in the example above suddenly needs to ship more copies of a popular title, a fulfillment center will have an easier time meeting that demand than if the publisher itself had to ship additional copies of the book.

In brief, when 3PL providers outsource any of their own contracted services, they become a 4PL provider.


In the example of a book publisher, if the fulfillment center subcontracts out its shrink-wrapping and freight weighing to other companies, then the center acts a 4PL provider. Some observers view 3PLs providers as managers of a particular outsourced service, while 4PL providers oversee services across an entire supply chain.

Freight forwarders do not actually ship materials, and instead function as a liaison between a client company and shipping firms. The freight forwarder negotiates prices, determines the best modes of transportation, establishes economical shipping routes and works on other logistics concerns.

As noted earlier, 3PL providers handle a broader range of services compared to forwarders.

Third party logistics

Also, a 3PL provider takes responsibility for the goods or services being shipped, while a freight forwarder likely will not, given it is just an intermediary.The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh injection of equity investment is transforming the marketplace, at the same time, shippers may expect to see 3PLs continue to purchase high-tech “solutions” and hire young professionals for implementation.

DTX Logistics provides quality third party logistics in Montreal for local, out of province and out of country customers. Third Party Logistics (3PL) companies handle outsourced procurement, transportation and distribution functions for client companies. Some 3PL services focus on . Third-Party Logistics Study Annual Study on the State of Logistics Outsourcing.

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Definition of Third Party Logistics. Define 3PL | Logistics List

Top 50 Global Third-Party Logistics Providers (3PLs) Ranked by Gross Revenue/Turnover. Third-party logistics (abbreviated 3PL, or sometimes TPL) in logistics and supply chain management is a company's use of third-party businesses to outsource elements of the company's distribution and fulfillment services.

Third-party logistics providers typically specialize in integrated operation.

Third-party logistics - Wikipedia