Core Functions of Third-Party Logistics (3PL) Providers
Third-party logistics, also called 3PL, involves the need for
many organizations to outsource the work of their supply chains to third-party
businesses. In the world of business, you need the services of third-party
logistics companies that provide comprehensive and one-stop solutions for
distribution, warehousing, transportation and order fulfillment, keeping your
supply chains in mind.
Due to third-parties, order fulfillment almost always has to
be outsourced. If you own a warehouse, you will need to rent shelf space in a
large warehouse that stores products from multiple businesses. To accomplish
this task, warehouse workers must collect your products and deposit them into
Storage: Inside the 3PL warehouse, you have to store the
goods in a safe place.
Distribution: Once the order is received, the third-party
logistics partner collects and distributes the items to each customer for order
Transportation: 3PL companies work with carrier partners, and
charge shipping costs from different carriers.