What is a 3PL?

In the simplest of definitions, a third-party logistics (or 3PL) business is a service provider that manages specific elements of an organizations supply chain. Typically, 3PL’s specialize in integrated operations of warehousing, fulfillment, distribution, and transportation services.

Organizations that outsource these types of services to 3PL’s can achieve scalable and customized solutions that fit their business needs, market conditions or customer requirements. 3PL’s essentially become an extension of your internal supply chain team thus allowing your business to focus on operational, financial and customer requirements.

Businesses that partner with knowledgeable 3PL providers experience several benefits from this supply chain relationship. Let’s dive a little deeper into these relationship perks.

Dealing with supply chain logistics can be a complex situation; warehousing, fulfillment and shipping all come with unique challenges. When trying to manage supply chain logistics, 3PL’s have the experience and resources that can quickly streamline the process. 3PL’s become an extension of your company and manage the process all the way through to delivery.

3PL’s can also provide insight into issues that may arise when shipping internationally. Documentation, customs, duties, shipping regulations can all present challenges when shipping internationally. Inaccurate paperwork or not adhering to specific guidelines could cause costly delays in shipping. 3PL’s take the stress away from organizations and manage the entire logistics supply chain.

Businesses that can focus their efforts on their core competencies position themselves to be more competitive in their market. 3PL’s save companies both time and money with their services by eliminating the need to invest in warehouse space, transportation, technology and additional manpower to operate their business.

An experienced 3PL also advises clients of supply chain errors which can not only be costly but could disappoint a customer’s expectations. 3PL’s can provide industry forecasts and aid the optimization of your inventory which ultimately saves your company money on inventory holding costs.

Utilizing a 3PL service provider means businesses get an all in one solution provider. From assembly, packaging, warehousing to transportation, a well-rounded 3PL can cover it all. 3PL’s have the resources available to adjust requirements when need be and connect each service within your supply chain process. 3PL’s are flexible and efficient which allow your company to maximize profits and optimize your supply chain.

As a strategic partner, 3PL’s match your logistics needs with the right carriers to handle your truckloads at the most affordable price possible. 3PL’s provide a much-needed value add service to supply chains which is why many manufacturers, retailers, food & dairy and construction companies utilize 3PL’s. 3PL’s operate in environments that demand rapid changes and require continuous improvement. Flexibility should apply to all aspects of your 3PL provider because they know that one solution does not fit all.

Small-to-medium sized businesses are outsourcing their distribution, warehousing and logistics to experienced 3PL’s and expanding their reach within new markets. Companies expanding rapidly or working with new international clients all experience the benefits of working with 3PL companies.

To understand more about 3PL providers, their capabilities, and advantages contact JBS Logistics & Warehousing today!

Media Contact:

Micalina Grove

Marketing Manager, JBS Logistics & Warehousing