Third Party Logistics (3PL) Services

Third-party logistics (3PL) is when a business hires an outside company to take care of its shipping and storage needs. Instead of handling things like warehousing, transportation, and order delivery themselves, companies let  3PLs manage these tasks. This way, they can focus on other business priorities, like marketing, branding, customer service, etc.

• Both couriers and 3PLs transport goods, but there’s a difference between the two.

  Couriers are focused on the final leg of the delivery process. They are in charge of transporting packages from a warehouse or distribution centre to the customer’s doorstep. 

  Third party logistics (3PLs) provide the complete logistics services, including warehousing, inventory management, order fulfilment, and transportation. 3rd party logistics companies’ roles cover the entire supply chain.

  Couriers are part of the 3PL order fulfilment process, and are often used by 3rd party logistics for the last-mile delivery.

• The terms “3PL” and “logistics provider” are often used interchangeably, but there is a technical difference between the two terms.

  3PL refers to a company that offers a comprehensive suite of logistics services, including warehousing, transportation, and order fulfilment. On the other hand, a logistics provider is a broader term that can cover a variety of companies involved in the logistics industry, including freight forwarders, carriers, and customs brokers.

  You can think of 3PL companies as a type of logistics provider that specialises in integrated supply chain management.

• The terms “third-party logistics (3PL)” and “contract logistics” overlap quite a bit.

  3PL refers to a range of logistics services that include warehousing, transportation, and order fulfilment, while contract logistics is a specific type of 3PL arrangement where a long-term contract is established between the client and the logistics provider. 

  This often involves a dedicated facility or resources for the client’s exclusive use. Contract logistics offer a higher level of customisation and control compared to a standard 3PL relationship.

• A key characteristic of a third party logistics provider is their ability to offer a comprehensive suite of logistics services. This includes:
  • Warehousing and inventory management
  • Order fulfilment
  • Transportation management
  • Customs clearance and documentation
  • Returns management
  • Value-added services

• Yes, absolutely! Shipping is one of the primary services offered by 3PL providers. The aspects of shipping that a 3p logistics partner handles include:
  • Carrier selection: Choosing the most suitable carrier based on factors like cost, speed, reliability, and their business partner’s needs.
  • Rate negotiation: Acquiring competitive shipping rates through volume discounts.
  • Shipment consolidation: Combining multiple shipments to optimise transportation costs.
  • Customs clearance: Handling import or export documentation and procedures.
  • Tracking and visibility: Providing real-time tracking information and managing expectations for both the business partner and the end-customer.

• Any business can benefit from a 3PL partner. However, certain types of businesses can get the most advantages when they partner up with a third-party logistics company. These businesses are:
  • Ecommerce businesses: With their rapid growth and fluctuating order volumes, ecommerce companies tend to rely on 3PLs to handle the complexities of order fulfilment.
  • Retailers: Both online and brick-and-mortar retailers can utilise 3PL services for efficient inventory management, order fulfilment, and distribution.
  • Manufacturers: 3PLs can help manufacturers manage the distribution of their products to various channels, including retailers and wholesalers.
  • Seasonal businesses: Companies experiencing significant fluctuations in demand can benefit from the scalability offered by 3PLs.
  • Businesses with limited logistics expertise: Those without in-house logistics capabilities can rely on 3PLs for end-to-end supply chain management.

  In essence, availing a third party logistics company’s services is beneficial for businesses that want to focus on their core competencies and optimise their supply chain operations.

• In choosing a 3PL provider in the 3rd party logistics industry, make sure they offer the specific services your business needs by evaluating their warehouse locations, transportation options, and technology capabilities.

  Look for third party warehousing companies that have experience in your industry, because they can better understand your unique requirements and assess their financial stability for long-term reliability. It’s also important to review how they use technology and how well their tech integrates with your systems.

  Compare pricing models to find the best value and check references and case studies to verify a 3PL’s track record with other clients.

• Since launch, we have been dedicated to minimising our environmental impact across our fulfilment centres and we are empowering our clients to do the same. We continuously review our processes and implement initiatives like paperless reporting, energy-efficient lighting, and responsible waste management (including recycling plastics, cardboard, and paper shredding).

  Green Fulfilment invests in eco-friendly recyclable packaging materials and we optimise our box sizes to minimise the carbon footprint of deliveries.

  One of our goals is to help build a greener future for everyone, so we’re always looking for new and better ways to practise sustainability in our order fulfilment processes.

• There is no one-size-fits-all cost for 3PL industry services, as prices vary from one business to the next. You can expect charges to depend on several factors, including:
  • The number of orders you are shipping
  • The number of items in each order
  • The physical size of a product
  • The type of product being shipped
  • The packaging demands of a product
  • The end-location of a shipped item
  • The quantity of storage space you need

  If you’re looking for an exact idea of how much your business needs to pay for third party logistics services, we recommend reaching out to the team at Green Fulfilment for personalised pricing and support.

• Yes! We prioritise eco-friendly practices throughout our operations. We utilize recyclable packaging materials, employ energy-efficient solutions in our warehouses, and optimize delivery routes to minimize our environmental impact.