Third Party Logistics (3PL)
What is a Third-Party Logistics (3PL) Provider?
Third-party logistics providers are like a puzzle piece, filling a supply chain gap based on business need(s). 3PLs are typically utilized for operations that a business may not have the time and/or resources to manage internally. This can include transportation, warehousing, and more. Some are asset-based and own their equipment, trucks and trailers, etc., but most 3PLs are non-asset-based.
Anyone can benefit from the advantages of 3PLs – from small businesses with a one-time need to Fortune 500 companies requiring more consistent support.
For example, a large industrial machinery manufacturer may work with a 3PL because they have multiple loads going out daily and they prefer to focus on growing sales and engineering their next product. A small business that produces machine parts, however, may reach out to a 3PL to help transport a new machine they bought to their facility.
With a 3PL, you have O.P.T.I.O.N.S.
One-point of communication. Rather than going back-and-forth with each individual carrier, you can streamline all communication through one partner.
Paperwork and legalities. Necessary but time-consuming steps such as verifying insurance, reviewing agreements, and continuously adjusting the vetting process are handled on your behalf.
Tracking. 3PLs work closely with each carrier, monitoring any issues that arise and keeping you updated along the way.
Industry knowledge. Experience with a variety of challenges and industries helps minimize risk of errors and delays. 3PLs focus on what they’re good at, so you can focus on what you’re great at.
Ongoing support. Permits, safety regulations, “what ifs,” and more – 3PLs can help you navigate all your logistical questions.
Network of resources. From various modes of transportation to advanced technology, the key value of 3PLs is in the network and resources they extend to you.
Synergy. When it comes to business growth and seasonal fluctuations, 3PLs provide a new level of flexibility, improving supply chain alignment.
Tips for Choosing the Right 3PL
How We Can Help
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Bottom line: 3PLs help you focus on what you do best.
Let’s get started by having a conversation about your logistical needs – contact us today.