The Function of 3pl providers

1. The Function Of Third
Party Logistics Providers
Synchronized Supply Systems Ltd
http://synchronized.in

2. Introduction
 A third party logistics company is an independent business
that specializes in providing a specific type of service to a
larger client.
 The majority of companies focus on one aspect of the
supply chain such as shipping.
 The purpose of a third party logistics provider is to improve
the efficiency of a client and to help control costs.
 This is done through the economics of scale.

3. Introduction
 Logistics providers like supply chain consultants and
couriers produce over $47 billion each year.
 Areas like transportation and warehousing are growing
annually at a rate of between 5 and 6 percent.
 Third party logistics companies perform a number of
different functions.

4. Warehousing
 Many third party logistics providers offer some form of
warehousing.
 This means that a client business can hire the company to
store products in a controlled facility that is managed by
the provider.
 This is an attractive option because it removes the need to
lease a warehouse and pay employees who are only
tangentially related to the core business.

5. Warehousing
The third party provider usually makes extensive capital
investments in the warehouse allowing for increased
efficiency through modern technologies.
Another advantage is that a provider might have
warehouses in centralized areas that make shipping and
receiving easier.

6. Transportation
A number of third part logistics companies offer
transportation services. This is one of the most common
services provided.
Transportation involves moving goods between two
locations. This could be from a coastal port to a warehouse or
from one retail store to another.

7. Transportation
 Transportation does not usually include other services
such as warehousing or consulting.
 Transportation across different jurisdictions is normally an
invaluable service since local businesses do not have the
capital to invest in trucks and licenses that would allow for
cross-country transport of goods.
 Many transportation providers have large fleets of trucks
available that can move goods between locations quickly
and efficiently.

8. Fulfillment
An increasingly popular type of third party logistics is
fulfillment. This is a version of warehousing.
Fulfillment means that a provider stores items in a
warehouse and then assembles different collections of items
in a box or other container.

9. Fulfillment
This is how orders are usually filled for ecommerce and
catalog companies.
The warehouse maintains pickers, packers and other
employees who can fulfill orders with a high level of accuracy
and speed.

10. Fulfillment
Most will also provide shipping services through another
third party logistics provider. Fulfillment providers sometimes
include value added services such as returns processing.

11. Logistics
 There are third party logistics companies that act primarily
as consultants.
 These companies do not maintain assets like a warehouse
or a fleet of trucks.

12. Logistics
The goal of these companies is to streamline the supply
chain and sometimes to develop an entire efficient supply
chain for a new business.
Supply chain consultants specialize in removing waste and
overhead from the procurement, warehousing and transport of
goods.

13. Logistics
The knowledge and experience of these individuals usually
results in a collection of asset-based third-party providers who
can work together more efficiently than a group of random
businesses assembled without the assistance of supply chain
consultants.