Third Party Logistics Supply Chain

Third Party Logistics (3PL) is the process of outsourcing logistics and transportation services to a company that specializes in those services. 3PL providers manage all or part of a company’s supply chain, including but not limited to transportation, warehousing, and freight management.

The term “supply chain” encompasses all activities involved in the movement of goods from the raw materials stage through to the end customer. A company’s supply chain includes both internal and external resources and processes. Internal resources include things like a company’s own manufacturing facilities, warehouses, and distribution centers. External resources are provided by third-party service providers, such as 3PLs.

A 3PL provider can offer a single service, such as transportation, or they can offer a comprehensive suite of services that cover all aspects of the supply chain. Some common 3PL services include:

•Transportation management – coordinating shipments across different modes of transportation (truck, rail, ship, etc.), both domestically and internationally

•tWarehousing – storing goods in a 3PL’s warehouse until they are needed

•tInventory management – tracking inventory levels and ensuring that goods are available when needed

•tFreight management – arranging for the pick-up and delivery of shipments

Outsourcing logistics to a 3PL can help companies save time and money by allowing them to focus on their core business activities. It can also help