Third-party logistics also known as 3PL in supply chain management is a company’s use of third party businesses to outsource elements of the company’s distribution and fulfillment services. A 3PL is a provider of outsourced services (transportation, warehousing, clearing, freight forwarding, removals and relocation and procurement). 3PL encompasses anything that involves management of the way resources are moved to the areas where they are required.
ADVANTAGES OF 3PL
Save Time and Money: Outsourcing a company’s logistics to a 3PL company helps increase the efficiency of the client company. It unburdens the company of having to invest in warehouse space and also involving in other logistics process. 3PL helps reduce the workload of the clients.
Flexibility and Scalability: Clients need not bother about warehouse space, technology, transportation, inventory needs, and staffs needed to execute the logistics process. 3PL companies have the ability to respond to these changes which helps avoid delay.
Vast Network: 3PL companies offer a rich vast network to aid clients in decision making processes. Using a 3PL allows your company to benefit from resources which are unavailable in-house. This avails the client different options of resources to pick from.