What is a Third Party Logistics (3PL)?

What is a Third Party Logistics (3PL)?

Businesses face many hurdles and complexities when getting their products from their factories 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 3PL.

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But what is a 3PL? And how can Transportify, as a 3rd party logistics and cargo delivery partner, help you improve your logistic network and operational performance? 

What is a 3PL?

3PL stands for “third party logistics.” These are companies that specialize fundamentally in moving goods from A to B. This means offering freight forwarding and cargo delivery services, point-to-point delivery, providing drivers, and finding the optimum routes and distribution networks. 

Most logistics providers can scale down and maximize resources and profitability. With many services offered to encompass supply chain activities, third party logistics providers are expected to optimize the process of the company’s logistics framework. 

Types of 3rd Party Logistics

Since logistics is an ever-changing industry, many companies offer various services and logistics solutions. Here are the types of logistics providers that can help you improve your distribution network:

1Standard 3rd Party Logistics

This type of loprovides logistic support on a fundamental level. These services involve transportation and storage of products and some other requests from the company’s end. 

Our Transportify fleet can be your standard cargo delivery services provider. We can support and provide transportation of your products from origin to destination safe and secured. Here are the variety of vehicles we have on our fleet: 

Column 1Column 2Column 3
Vehicle TypeCargo DimensionCapacity
IsEconomy (Sedan/Hatchback)L: 3.5 ft
W: 2 ft
H: 2.5 ft
200 kg
IsEconomy Extra Space (SUV/MPV)L: 5 ft
W: 3.2 ft
H: 2.8 ft
300 kg
IsL300/VanL: 7 ft
W: 4 ft
H: 4 ft
1000 kg
Pickup TruckL: 10 ft
W: 6 ft
H: Open
2000 kg
Pickup Truck Extra SpaceL: 14 ft
W: 6 ft
H: Open
2000 kg
4W Closed VanClosed Van (4W)L: 10 ft
W: 6 ft
H: 6 ft
2000 kg
6W Closed VanClosed Van Extra Space (6W)L: 14 ft
W: 6 ft
H: 6 ft
2000 kg
Long Pickup TruckL: 18 ft
W: 6 ft
H: Open
7000 kg
Vehicle 10 Wheeler Wing Van Icon10-W Wing VanL: 32 ft
W: 7.8 ft
H: 7.8 ft
15000 kg
reefer truck with decalReefer TruckL: 14 ft
W: 6 ft
H: 6 ft
2000 kg
Mini Dump TruckL: 10 ft
W: 6 ft
H: Open
3500 kg

2Service Developer 3rd Party Logistics

Apart from the essential logistics support services, the service developer 3PLs offer IT support and product tracking for the security of your parcels. This is an excellent way to ensure that the delivery is safe and on-time. 

3Customer Adapter 3rd Party Logistics

Customer adapter 3PLs are very different because they take over and run the current logistics operation on the partner company’s behest. This is where they start on enhancing the distribution flow of the company. 

4Customer Developer 3rd Party Logistics

Customer Developer 3PL inherits the current logistic network flow and applies some of their systems to it. They don’t merely offer to support the logistics department, but they give them valuable insights on improving their process. 

What does that mean for your business?

Given how many hurdles there are in the modern world of logistics, working with a 3rd party logistics and cargo delivery provider can free you up in several helpful ways. Many benefits come with it, so we would always explore the option if it is something that you have not considered before. For example, how much money do you currently spend on your logistics? Do you have a fleet of vehicles and drivers on the books, or do you rent them elsewhere? Is your freight forwarding service up to par, or could you benefit from seeking specialist assistance? A third party logistics provider could be the difference between you coasting alone as you are, or thrusting into the new years with a brand-new, sophisticated delivery system. 

Due to the rapid growth of businesses, and the continuous increase in the consumption of the population, the demand for third party logistics providers are also expected to rise. More companies are seeing the potential of having a partner in third party logistics to connect with their customers. Each 3rd party logistics offers a wide variety of services on its fleet. For example with Transportify, companies may avail of our business program option, which provides flexible terms on payment schemes, fleet requests, process integration, and goods insurance on their bookings. We become excellent representatives in handling packages and improve interaction with your customers. 

How can a 3PL benefit you?

You can use a 3rd party logistics for several different services. For example, perhaps you are only interested in a truck rental in Pampanga but would instead handle your business yourself freight forwarding aspects. Maybe you would like to keep your fleet and drivers on the books, and simply need an expert company with the right connections to take care of the freight forwarding aspect on your behalf. You can hire a third party logistics or cargo delivery provider to handle all of your requirements entirely. It is up to you! 

However, once you realize quite how much a 3PL can benefit you, you will likely want to de-fleet and outsource your logistics requirements altogether. Here are some notable benefits of having a third party logistics provider: 

  • Save your money, by allowing you to de-fleet 

The least considerable option of a company is to overspend. With a third party logistics partner, you now have the choice of not acquiring fixed assets like vehicles in doing business. Partnering with third-party logistics providers allows you to de-fleet and reduce business operating costs. You eliminate the hassle on your parcel and save money for other possible business opportunities. In Transportify, we offer this flexible option to every business, especially with micro, small and medium enterprises (MSMEs). Our fleet variation can support personalized business requirements. 

  • Improve your distribution network

3PLs broaden the network of every business. They are helping the company grow by reaching and improving the logistics distribution network. Most cargo delivery providers have the infrastructure in place to handle large volumes of deliveries. By availing these cargo delivery services, you technically expand your business. 

  • Offer more accurate ETA’s on deliveries using state-of-the-art GPS tracking software.

It is best to track all your packages to ensure that it arrives safely and on-time. State of the art GPS tracking software is a big help in making this possible. In our application, we offer a live tracking feature on the booking to give our customers accurate tracking of their delivery status. 

  • Allow you to move on from the ‘paper-trail’ methods of old and embrace the digitalization of your companies’ logistics.

Third party logistics partners shall offer digitized receipts on your deliveries. You can easily access these relevant documents with just one click. Our company has these services. Apart from digitized revenues, we have a COD and POD feature that may help you ease the burden of processing customer documents regarding each delivery and streamlining your paper trail methods. 

  • Have access to larger delivery vehicles such as ten-wheeler wing vans with long-haul capabilities

There should be a wide variety of vehicles that the company could offer. It widens the business capabilities in reaching the customer if there is a big fleet available. Transportify has a large fleet available, ranging from sedans to 10W Wing vans. 

  • Step into the international market with a well-connected freight forwarding service

The right third party logistics provider enables you to transact outside of your market. A well-connected forwarding service opens opportunities for future expansion that will bring your business to the next level. 

  • Enable you to offer faster and smoother delivery

You may not have the capabilities to offer same-day-delivery, but with an established 3rd party logistics, you can. The best logistics provider will ensure that your deliveries are always on time to increase customer satisfaction. 

  • Improve the overall level of customer service that you provide

Overall customer service and satisfaction reflect on the image of the company. Your 3rd party logistics provider must be reliable for these services. The cargo delivery provider must handle customer concerns anytime. With our company becoming your cargo delivery provider, we offer dedicated customer services to handle the worries on the item’s booking and transit. 

These are just a handful of how a logistics provider can transform your business. But you don’t have to commit entirely straight away. Third party logistics companies are beneficial when dealing with seasonal variations. For example, suppose your business is quite small for now. In that case, however, you are experiencing hectic periods throughout Christmas, then a third party logistics provider can offer additional assistance in the build-up to—and throughout Christmas. 

In addition to that, you don’t necessarily have to de-fleet entirely and embrace logistics before getting to know them first. You can try their service by handing a few critical deliveries to gauge whether they are worth investing in all of your logistics requirements. For more information regarding this area, check out the Transportify’s business program There you will learn a great deal about how we can benefit your business. 

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 best interest of a company. A reliable logistics provider takes responsibility for planning, implementation, tracking, and movement of goods. Since we are now in the modern era where new technologies are being placed, business distribution networks are becoming more complex. Choosing the right provider for logistics solutions became an absolute priority. 

Transportify, as your go-to 3rd party logistics provider, offers various services with the best quality. 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. 

Frequently Asked Questions:

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 overall logistics integration. 

What is the most affordable 3PL provider in Metro Manila?

🧠 There are many 3PL providers in Metro Manila. 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. They have sedans, L300s, closed vans up to 10W wing vans that could fit your business needs. 

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