Third-party logistics (3PL) companies specialize in purchasing products, transporting those products to their destination, and then placing them on the shelves of a retailer. Each of these tasks is rather complex, so it’s difficult to understand how a 3PL company goes about fulfilling its clients’ orders. If you’re wondering how third-party logistics works or what types of services they provide, keep reading.
What are the services a 3PL provides?
Third-party logistics provide logistics services to other companies in the supply chain. These companies are often referred to as third-party logistics providers. They can be structured as a single company or as a network of companies, and they may provide both full-service and outsourced services.
Third-party logistics providers help businesses with their distribution, transportation, and warehousing needs by providing trucking fleets and warehouses for storing goods until they are needed by the company that has purchased them. In addition, many third-party logistics providers offer related services, such as reverse logistics (re-packaging), freight forwarding, customs brokerage, freight insurance, and air freight brokerage.
The term “third-party logistics” was first used in the late 1990s to describe warehouses operated by companies other than the one that had originally manufactured or produced the product being shipped or stored. Sometimes, these warehouses are owned by suppliers but operated under contract with third parties who want to keep their products. At the same time, they awaited payment from customers’ supply chain management.
The 3PL Order Fulfillment
3PL Order Fulfillment is a third party logistics (3PL) service that focuses on the storage and distribution of goods. 3PLs collect orders from customers and then deliver them to the customer’s location.The 3PL Order Fulfillment services are provided by a company that owns warehouses or distribution centers. The company ships merchandise from its own facilities or from other warehouses owned by other companies. The 3PL Order Fulfillment service provider collects and stores products until they are ready to be shipped to customers.
The 3PL Order Fulfillment services are used by companies who want to control their inventory levels, reduce shipping costs and increase customer satisfaction through better product availability.
How Does a 3PL Works?
The logistics industry is a melting pot of different companies. Some are retailers, some are manufacturers, and some are both.If you’re a retailer, you probably have little to no knowledge of how your products get from the supplier to the customer. You only deal with the product once it’s in stock at your store — unless you’ve got a fulfillment center on premises or in another building within your own property.
