Businesses face many hurdles and complexities when getting their products from their factories or distribution center to the customer’s door. Such hurdles include implementing the cargo delivery services itself, the overall costs involved with running a fleet of vehicles, and handling freight forwarding, which is why more and more companies are turning to third party logistics (3PL).
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But what is a 3PL delivery? And how it can help you improve your logistic network and operational performance?
What Is A Third Party Logistics?
3PL, though it sounds redundant, stands for third party logistics. Imagine you run a business that sells products. Instead of handling all the shipping, storage, and delivery yourself, you can hire a specialized logistics company – a third party logistics provider. Their core expertise is managing the entire supply chain process for you.
Most 3PL logistics providers can scale down and maximize resources and profitability during procurement. With many services offered to encompass 3PL supply chain activities, third party logistics provider is expected to optimize the company’s logistics framework process.
A comprehensive 3PL will offer the following services:
- Freight forwarding
- Cargo delivery
- Point-to-point delivery
- Driver provisioning
- Distribution network optimization
- Route optimization
- Warehouse management
- Inventory management
- Order fulfillment
- Supply chain management
3PL vs. 4PL: Differences Explained
4PL stands for fourth-party logistics. A 4PL is a company that provides a comprehensive outsourced logistics solution that combines the core competencies of leading service providers with its management resources and technology to create a seamless, end-to-end solution.
4PLs are often used by companies who have complex supply chain needs or who want to outsource their entire supply chain operation. 4PLs typically provide transportation management, warehousing, order fulfillment, and inventory management.
The main difference between 3PL and 4PL is that 4PLs provide an end-to-end solution while 3PLs provide fragmented solutions. Additionally, 4PLs have their management resources and technology while 3PLs typically do not.
Types of Services Offered by Third Party Logistics Providers
Third party logistics providers offer a variety of helpful services to make supply chains run smoother and improve business operations. Some key services they provide include:
Transportation Management
They handle all your shipping needs, from managing a fleet of trucks to coordinating freight shipments. Their expertise allows them to plan optimal routes and consolidate shipments, reducing transportation costs.
Warehousing Solutions
Third party logistics have warehouse facilities to store inventory securely. These warehouses often use advanced technology to track inventory levels accurately and manage stock efficiently.
Inventory Management
With sophisticated systems and know-how, third party logistics can maintain just the right inventory levels for your business. This helps avoid costly excess inventory while also preventing stockouts.
In essence, third party logistics providers act as an extension of your business’s logistics arm, providing services and capabilities to streamline the supply chain from transportation to inventory management. Their scale and expertise can lead to significant cost savings and operational efficiencies.
Not Sure if You Need a Third Party Logistics? Assess Your Needs
The main benefit of using a third party logistics company in the Philippines is that it can save your business time and money. Managing your logistics can be costly and time-consuming, especially if you’re not experienced.
A 3PL can help you to streamline your processes, make your operations more efficient, and ultimately improve your bottom line.
Not sure if you need a 3PL? Here are some signs that it might be time to outsource your logistics:
- You’re growing quickly and need help to keep up with the demand.
- You’re expanding into new markets or opening new locations.
- You want to focus on your core business and leave logistics to the experts.
- Your current logistics solution is no longer working for you.
- You’re not happy with your existing logistics provider.
If any of the above sounds familiar, it might be time to consider using a third party logistics company.
Industries That Use Third Party Logistics The Most
There’s no one-size-fits-all answer to this question, as the use of 3PL services varies widely across industries. The Fortune 500 companies even use such services to maintain high service levels, especially if delivery and fulfillment are an integral part of the company. However, some of the most common users of 3PLs include retail, manufacturing, and e-commerce businesses.
There are many reasons why these industries use third party logistics. The most common reason is to outsource their logistics needs so they can focus on their core business. Other reasons include accessing the expertise and resources of a third party logistics provider, reducing costs, and improving service levels. This also relieves companies from the workforce that they can cut spending on, saving them wealth and sales.
Third party logistics providers offer a comprehensive range of logistics services that you can customize to meet the specific needs of each client. They have the experience and expertise to handle all aspects of the supply chain, from cross-docking, transportation, and warehousing to order fulfillment and customer service. In addition, they often have access to cutting-edge technology and resources that can further improve efficiency and service levels.
Outsourcing logistics to a third party can help companies reduce costs, improve service levels, and focus on their core business. Therefore, it is important to choose a reputable and experienced provider that can meet the specific needs of your business.
What Exactly Do Third Party Logistics Providers Do for Online Businesses?
Third-party logistics providers provide more than simply shipping services. Many suppliers specialize in various regions within a country. In addition, many storage companies have extended their services by adding shipping services to public and how important contract logistics in SCM and in freight consolidation. Some businesses also offer different types of freight transport to customers.
Third-party logistics is dependent on technology. Modern supply chain management is concerned with optimizing inventory control and the rapid provisioning of products, which began with simply storing items. Organizations that utilize third-party logistics may provide extra services such as demand forecasting, detailed reports, transportation management software, and freight bill auditing.
Will 3PL Work for Any Size of Business?
A benefit of using a third party logistics provider is that it can improve logistics operations for a business of any size. Logistics providers can provide a business with as few or as many services as are needed. For example, a smaller company may only require shipping or warehousing of goods, while a larger company may want the provider to offer them a bundle of services to manage their entire supply chain. Increased efficiency in these areas allows a business to grow while successfully managing its bottom line.
How Can You Benefit From a Third Party Logistics Provider?
Using third-party logistics providers or 3PL logistics can really help businesses streamline their supply chain operations and boost efficiency in several ways:
It saves money
Third party logistics provider have the expertise and resources to optimize routes, get better freight rates, and generally run logistics more cost-effectively than individual businesses could on their own.
Improves efficiency and customer service
With sophisticated logistics solutions, orders get fulfilled faster and more seamlessly, keeping customers happy.
Access to Specialized Logistics Expertise
Third party logistics live and breathe supply chain management – they stay on top of the latest trends, technologies, and best practices in the industry. Rather than having to develop that expertise internally, businesses can leverage the 3PL’s know-how.
Third Party Logistics Experience with a Construction Materials Supplier
Many businesses have seen significant improvements in their supply chain management and increased profitability by partnering with 3PL providers. This is testified by Aerkrete Building Solutions, Inc. in partnering with a third party logistics provider like Transportify. Ms. Viene Alexis Yu mentioned the important role of Transportify in their logistics operation, “I believe it is essential to commend the exemplary support we received from Transportify which has been instrumental in the growth of our company. The courtesy and patience shown by their representatives made us feel valued as a customer, and their unwavering commitment to addressing our concerns promptly and effectively left a lasting positive impact. This further solidifies our trust and loyalty and I wholeheartedly recommend their services without hesitation.”
Tips for Choosing a Reliable Third Party Logistics Provider
Don’t just go with the first 3PL you come across. Doing your homework upfront can save you a lot of headaches down the road. Look for a provider that’s truly invested in understanding your business and its unique needs.
See what kind of tech they’re packing.
You want a 3PL that uses modern systems that’ll mesh seamlessly with your operations. Outdated tech is a recipe for chaos.
Experience matters, big time.
A 3PL that’s been around the block in your industry knows the ropes. Read some reviews and case studies to get a feel for how they’ve performed for others.
Make sure they can bring the full package.
If you need specialized services beyond just shipping and warehousing, ensure the 3PL can deliver on those fronts too. Don’t settle for a one-size-fits-all approach.
Communication is crucial.
A 3PL partner should be highly responsive and proactive about addressing any hiccups. You want someone who’ll go the extra mile, not just stay in their lane.
At the end of the day, picking the right 3PL is about finding a partner invested in your success. With some due diligence, you can team up with experts that’ll help streamline your supply chain for the long haul.
Transportify, as Your Go-to 3PL Provider
Transporting goods and materials from origin to destination isn’t easy. Picking the right logistics provider should be in the company’s best interest. A reliable logistics provider takes responsibility for planning, implementation, tracking, and movement of goods. Business distribution networks are becoming more complex since we are now in the modern era where new technologies are being placed. Therefore, choosing the right provider for logistics solutions became an absolute priority.
Transportify, as your go-to 3rd party logistics and delivery provider, offers various services of the best quality. We offer two types of primary services: full truckload and less than truckload shipping. We are fit to help SMEs and large companies with their last-mile delivery needs and door to door from the distribution center to the point of sale outlets.
Our driver-partners are well-trained in different situations required by the business. The core aspects of supply chain management have been considered while crafting our booking procedures, picking and handling, delivery, tracking, and route optimization. We made sure that our customers would pay the right price for excellent service. So what are you waiting for? Download our app now, and explore excellent services.
Download the Transportify app today!
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What are the advantages of having a third party logistics partner?
🌐 It opens various business opportunities, reduces operational costs, and improves overall logistics service. Your company may now expand if the logistics partner has an extensive distribution network. The company may now de-fleet and soon reduce its operational costs. And a third party logistics partner boosts and improves the process in logistics by trying new systems and methodologies. Transportify can be your go-to logistics partner. We have a wide variety of vehicles and stable market value, which can help your business’s overall logistics integration.
What is the most affordable 3PL provider in the Philippines?
🌐 There are many 3PL providers in the country. The vehicle selection varies on the business requirements. But if your business or company is looking for the most affordable rates for bulk deliveries, you may choose to avail of Transportify as your delivery provider. We have sedans, L300s, closed vans up to wing vans that could fit your palletized goods.
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