3PL- A booming logistic Layer

Who are Logistic Providers? A logistic provider is a company/individual who takes responsibility of managing and controlling of moving goods or materials between two different ends. These companies/individuals will take care of activities involved intransportation, packaging, distribution, warehousing, inventory and so on.

Basing on various kinds of services these logistic providers are classified into 4 different layers

Penyedia logistik who are specialized in providing one particular service and will only operate in a restricted geographical area fall under First party Logistic Providers (or 1PL layer)

Logistic providers similar to 1PL but will operate in an extended geographical locational (National wide) will fall under Second Party Logistic Providers (or 2PL layer).

Logistic providers either specialized in handling one particular service or managing entire supply chain but are supported by technology and integrates the entire system come under Third Party Logistic Providers (also known as 3PL or TPL)

Forth party Logistic Providers does not own any of the assets that are needed for logistics or Supply Chain Management. They act as consultant for the entire Supply Chain.

How Third party logistic providers help business?

A company outsources its logistic activities to the outsider. These people will handle all the necessary activities to complete the consignment on behalf of the outsourced company.  They take the responsibility of completing the shipment including the documentation required for security clearances. These people will customize the services basing on the needs of the client. They also serve on-demand needs of the customer.

3PL provides various types of services like transportation, distribution, documentation, storage management, and stock maintenance, raw material supplying and shipping the finished products

Courier companies, Freight maintenance people, warehouse contractors etc will come under 3PL

By outsourcing the logistics company can cut down the cost and time spent on finishing the shipment. At the same time the company may lose control over the process.