What Is 3PL, and Why Is It Important?

What Is 3PL, and Why Is It Important?

3PL is the abbreviation used to describe third-party logistics. A provider of third party logistics is an independent business capable of providing assistance with product distribution for another company. Basically, if you want to use a 3PL, you are outsourcing work to a larger firm that has connections in the world of transportation, storage, and order fulfillment. Ultimately, a high-quality logistics company will be able to integrate your operations to better manage yards, the distribution process, warehousing, and how your customers receive their products on time.

Outsourcing through 3PL

Outsourcing through 3PLIt is not unusual for many companies to outsource, even small businesses. However, many people are unsure of how to begin the process. First, you need to know what it is you want a third party to do to help your company. You can then determine what type of provider to hire for assistance.

Businesses can identify three different types of 3PL providers:

 

  • The Standard 3PL Provider
  • The Customer Adaptor
  • The Customer Developer
  • The Service Developer

The Standard 3PL Provider is the most basic of logistics businesses. This type of company will perform basic activities like picking, packing, warehousing, and distribution. Most of these companies do third party logistics in addition to a larger area of work like transportation or warehouse management.

Almost no business uses customer adaptor since this type of logistics is sought out by the customer themselves. A customer developer can be hired and is a business that improves your base of loyal clientele. A 3PL will be able to help you find new demographics to sell your product without difficulty.

The second most popular type of 3PL provider is the service developer. Service developers tend to work for large companies and are essential for doing a complete overhaul of the shipping and storage process.

Why Should You Outsource your 3PL?

Why Should You Outsource your 3PL?Depending on the size of your business, you might need additional assistance. Small companies often struggle with shipping and management because they have no employees with experience in those fields. A large business, on the other hand, often struggles because the process of shipping becomes too complicated for an employee to handle on their own.

Outsourcing also comes with some additional benefits. You can increase the number of professional contacts you possess and can simplify and optimize your supply chain without needing to invest extra time and energy in that part of your company.

It should be no surprise that a vast majority of companies, no matter their size, request assistance with logistics.

How to Receive 3PL

No matter the size of your business, finding a high-quality provider of third party logistics is essential to optimizing your supply chain and keeping the entire operation running smoothly. We at American Manufacturing Solutions focus on helping each and every one of our clients meet their business goals by providing high-quality standard services customized to suit your needs. For more information, contact us today and see how we can help your business grow.