3PL Explained - What is 3PL, and How Can you Use it?

3PL Explained - What is 3PL, and How Can you Use it?

If you are new to the world of logistics, you may not be familiar with the term “3PL”. Don’t worry – it’s not a tough concept to grasp, and it can actually make a huge difference for your company’s logistics.

3PL stands for 3rd party logistics and refers to a company outsourcing to a 3rd party for their fulfillment and logistics services. 3PL companies specialize in certain areas of logistics and can help your company to expedite their services.

Curious to learn more about 3PL, and how it can help you? Read on – this post will cover all the basics.

3PL services available

3PL services available3PL companies offer a range of services to compliment your company’s logistics. Included among those are transportation or freight management, public and contract warehousing, distribution management and freight consolidation.

Transportation and freight management is one of the most common 3PL services. Companies that specialize in transportation services will help you to manage your transportation and coordinate across delivery and driving services.

Warehousing services, just like you might think, can help your company to store and manage products in reliable, independent warehouses. Distribution management and freight consolidation services can provide the technology, infrastructure and knowhow your company needs to solidify your distribution chains.

A lot of 3PL companies out there specialize in one or multiple of these services. A few common names you may have heard before including Ryder, FedEx Logistics and UPS Logistics, among many others.

Why should you invest in 3PL services?

Why should you invest in 3PL services?3PL can completely re-vamp your company’s logistics. For a small or growing company with a complex distribution chain, logistics can be a burden. It requires a lot of staff energy, budgeting and time management to make sure that everything goes smoothly.

Outsourcing an aspect of your company’s logistics to a 3rd party company can take some of the stress out of managing your logistics, and allow your company to focus on more important things, like expanding your company’s growth.

Better yet, 3PL companies are experts at what they do. They specialize in logistics, whether it is transportation, warehousing, or distribution chain management. You can rest assured that your company’s logistics are in experienced hands.

Let’s put it this way – if your air conditioner breaks down at home, would you try to fix it yourself, or would you hire an experienced HVAC professional? The same can be said for professional logistics. Bringing in an expert can just help things run more smoothly across the board.

Final thoughts

3rd party logistics are a great way to reorganize your company’s logistics and strengthen your supply and distribution chains. 3PL companies specialize in different logistics services and will handle those services professionally and efficiently so that your company can focus resources on other areas and continue to grow and succeed.
Curious to learn more about 3PL and how it can benefit your company? Feel free to get in touch with American Manufacturing Services with any questions you might have.