What are Third party Logistics Providers?
Third party Logistics Providers are firms that ensure customers of outsource by providing services along with their advanced knowledge in logistics and management. Third party logistics providers or firms that deals with logistics and management makes it easy for businesses to pay attention to their main goals without having to worry about transportation of goods or end brand of productivity as well as distribution. Like said, third party logistics providers will monitor and grow in charge of warehouses, transportation of goods, and operation so that businesses won’t have to worry about these factors. These firms would also have to consider market trends to meet patron’s demands and needs; it also has to make plans and adaptations for specific businesses in order to strike for profit. Most importantly, these firms have to be closely aware of delivery service requirements for product or service. Most third party logistics providers add up other services dealing greatly with productivity บริษัทส่งของ, operation, transportation, and other services dealing with integrating parts of the supply company which then makes it a lot easier and effortless for businesses to concentrate and to leave these factors to these firms that are advanced and ascertained.
Like said above, third party logistics providers provide services dealing with transportation, operation, and mainly any scenario that involves logistic management. Third party logistics providers are well educated and are experienced with logistic management which ensures customers and businesses their safety and is something that will minimize stress and will enhance quality in other areas of business. Other services include:
4. Specific packaging
5. Security system
6. Advices and plans
7. Managerial tips and suggestions
Types of 3PL Providers
There are different categories of 3PL providers which have different jobs and responsibilities to enhance quality and to monitor as well as cover all areas of logistics management. There are shipping forwarders, courier companies, together with other companies that offer services dealing with transportation and deliveries. The four main categories and functions of third party logistics providers include:
1. A standard 3PL provider: these providers perform standard and basic tasks such as pick packing, warehousing, and distribution of products.
2. Service developer: these providers will offer customers advanced value-added services such as tracking and dating, cross-docking, specific packing, and providing a unique security system.
3. The customer adapter: Those providers in this position will have to monitor and take charge of all logistic activities. Most of the time, these people are requested by the customers but they are not included normally in some cases.
4. The customer developer: This position is the highest among other positions with respect to its activities and processes. People in this position will have to emerge themselves and grow fully responsible of almost all logistic services of a specific business. Also, they have to look deeply in small details and make sure everything will be done by the time it has to be done.
Not for Asset-Based Logistics Providers
Nowadays, technology has now become the number one impact on businesses and way things are usually done. Logistics management is one of the main areas of business that has been greatly affected by technology and the associated. Not for asset-based logistics providers provide services that still deals with logistics management; however, they do not need to perform on-hands services such as employing trucks, owning physical freights, warehousing, or employing storage trailers. In short, not for asset-based logistics providers provide spoken and visual concepts and services like financial planning, scheduling, transportation fee plan, and other services. Not for asset-based logistics providers are experts that set up teams to cope up with customer needs and wants since they are well-experienced and know technological tools as well as their uses well. These providers would also learn to negotiate and present publicly to customers their abilities, name types of methods which can be used, and pinpoint benefits the purchasers would have when using their service. Though, many 3PL providers today offer transportation services like shipping and flyer service offerings. These transportation services are called “On-demand transportation” which has become a great impact to businesses and has offered amounts of solutions to supply company needs. Ways of transportation include:
1. FTL, Full Truck Load
3. Next Flight Out
4. International Expedited
Possible Reasons of Choosing Third party Logistic Providers
1. Businesses can focus mainly on other areas of business such as advertising, productivity, and finance
2. Transportation of goods and its distribution plans are said to be accommodating and adjustable since it has to adjust to new trend and market changes therefore, third party logistics providers are essential to confirm decisions on distribution and to set up plans that businesses might not be able to
3. Third party logistics providers can decrease and minimize the overall business expenses
4. Business owners and entrepreneurs will not have to waste their time worrying about distribution, instead, they focus on productivity and product introduction to the market
Pros and cons of Third party Logistics Providers
1. 3PLs monitors and provides security for customers and minimize risks that deal with transportation and the distribution processes; some firms monitor places where goods are distributed to make sure all goods are safe and completely distributed with no errors
2. Third party logistics providers care much about their customers and project out their efforts through extra services that can enhance productivity and increase business management quality
3. These firms even monitor routes and ways of transportation as well as use technology to communicate within the system not to waste time and to make transportation faster
1. Financial risks and losses- a provider has to learn about a specific business beforehand in order to startup plans
2. Charging minimum prices and costs but add additional fees later- causes customer turnover
3. Some firms may not have insurances for products and transportation systems
These firms have a wide variety of methods to deal with different customers and businesses which then needs time to adapt and to determine as well as pinpoint markets. Summing up, the firms provide a safer, faster, and a cheaper way of distribution compared to a business dealing with all areas alone.