3PL - A Common Logistics Service Provider

A logistics service provider, more commonly known as 3PL, provider is a business that serves as an intermediary between the manufacturer and the shipper. This business is an effective means to ensure that goods get to their customers on time and in perfect condition. It helps reduce costs and losses that might be incurred while transporting the goods to their destination. In addition, it helps in stabilizing the industry by ensuring the smooth flow of supplies.

The key role that the 3PL plays in the supply chain is by offering an integrated approach to order management. 3PLs offer warehousing, logistics and returns process integration. The warehousing part refers to the facility to store finished goods until they are ready for shipment. It may be temporary storage, bridge stock or any such facility that offers a location where goods can be stored until ordered. In addition, the logistics service provider offers an integrated approach to order management including product analysis, inventory control and chain yunexpress.

The logistics services include warehousing facilities to store finished products until they are ready for shipping. Some examples of such warehousing facilities include full-line and chain warehouses, divisions of chain or division multiple warehouses, multi-field distribution centers and trucking yards. The warehouse management system is the system that monitors the physical location of goods, controls their movement, identifies potential risks and ensures adequate space. The order fulfillment part involves contacting customers, receiving and sending shipping information, controlling sales and returns process and fulfilling customer orders. Most of the providers offer freight shipping services, freight forwarding, non-stop delivery, next day delivery and rush shipping.

The logistics service provider manages the transportation management. It includes load planning, transportation management, customer service, carrier management, emergency vehicle management and warehousing. The provider offers the same as other freight providers such as freight forwarders, freight consolidation and acquisition, supplier logistics tracking, supply chain software and web analytics systems. The transportation management incorporates vehicle route mapping, vehicle tracking, fuel management, driver management, and driver pay structures and maintenance programs.

The inventory management is the process of determining and monitoring the current inventory levels and liabilities. In order to minimize transportation costs, the service provider uses carrier route optimization, flexible scheduling, elimination of minimum stopovers, flexible interchange and other strategies to reduce transportation costs. In addition, the inventory management includes warehousing to store finished goods until they are ready for shipping. Most of the providers offer both freight forwarders and container brokers to provide additional value added services. The logistics service provider will determine the best carrier according to your individual needs, business needs, industry and location.

Another part of the logistics procedure is warehouse and transportation operations. The service provider provides warehousing and transportation solutions that ensure effective operation. It takes care of the entire process including shipment placement, delivery and pickup, documentation and title transfer, and packing and paperwork. The warehouse is where the goods are stored until they are ready for shipment. Most of the providers have a single, multiple or combination warehouse facility for the purpose of both storage and shipping. It ensures that the business is able to meet customer demands and replenish stocks at the most cost effective rates.

With the changing needs of customers, companies have to constantly change their strategies and look for new ways of improving customer service, increasing profitability and reducing costs. For this reason, a fulfillment center is becoming an integral part of the supply chain equation. Fulfillment centers help in all facets of supply chain management by offering fast delivery, unmatched convenience, improved quality, competitive pricing, and more. There are several types of supply chain management and they include lead management, lead time management, replenishment management, and order flow management. The supply chain needs fulfillment centers to perform all these functions. A logistics service provider will determine the best possible solution for its clients.

There are various types of logistics services provided by a third party logistics provider. Some of these include commercial transportation services, transportation of perishable goods, full-line and terminal warehousing, specialty warehousing such as pharmaceuticals, chemical products, medical supplies, food products, bakery, energy and industrial supplies, and automotive services, to name a few. The services provided by a third party logistics provider can be delivered through a virtual network of wireless depots or stand-in locations, trucking applications, electronic data interchange systems and other on-site and off-site solutions such as self-serve and rack exchange systems.