What do you mean by third party logistics?

Third-party logistics (abbreviated as 3PL, or TPL) in logistics and supply chain management is an organization’s use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.

Who uses 3PL?

6 Industries That Use 3PLs for Improved Efficiency &…

• Medical. In the medical industry, lives are literally on the line when it comes to devices and samples moving from one place to another.
• Pharmaceutical.
• Manufacturing.
• Seasonal Retail.
• Construction.
• Restaurants.

Why do companies use third-party logistics?

When a company uses a 3PL, they can scale space, labor, and transportation according to current inventory. Additionally, they are often able to ease the transition between seasonal periods and industry fluctuation. When expanding into new markets, businesses can rely on a 3PL to aid growth in new regions.

What are the advantages of third party logistics?

Here are the 6 key benefits of 3PL in supply chain management:

• Drive Cost Savings.
• Get Access to Expertise and Experience.
• Focus on Core Competencies.
• Gain Flexibility and Scalability.
• Enable Business Growth and Market Expansion.
• Improve Customer Satisfaction.

What does third party logistics company do?

Third Party Logistics (3PL) is the function by which the owner of goods (The Client Company) outsources various elements of the supply chain to one 3PL company that can perform the management function of the clients inbound freight, customs, warehousing, order fulfilment, distribution, and outbound freight to the clients customers.

How do third party logistics company work?

How Does a Third Party Logistics Company Work? Inside the Logistics Distribution and Supply Chain. Third Party Logistics Companies Have a Broad Reach. Logistics Planning and Marketing Analysts. Direct Drive Logistics is Your Indispensable Business Partner.

What is third party warehousing and fulfillment?

The term third-party logistics is often also used interchangeably with order fulfillment. A third-party warehouse provides a full range of eCommerce fulfillment services. This can include warehousing, order processing, and shipping and receiving. Many 3PL warehouses provide other services.

What does third party warehousing mean?

Third party warehousing means asking a professional company to handle your receiving, storage, handling and shipment aspects of operating your business. At the third-party warehouse facility, you can store your inventory that you need to have on hand and that you need to have ready to ship out.