Getting into details with the different types of 3PL third party logistics providers
If you are in the world of business in the United Kingdom, then you are definitely someone that is dealing with sending and receiving packages, and that means that you are involved and dealing with logistics. Now, we will explain you what is a 3PL third party logistics, so, it is something that is used in logistics and supply chain management in order to outsource a part, or even the entire business’ distribution and fulfilment services to another company.
Before it used to be that only two parties were involved in the transportation process, however times have now definitely changed and even that process has been made simpler. There are a few different types of logistics providers in these cases and today we are going to be taking a look at them, so make sure you keep on reading to find out more about them.
This first type that we are going to talk about today is the transportation based logistics provider. This is a type that specializes in taking care with the actual transport between different locations, or the shipping. An example of what they could do is handling the inventory shipment between your own factory and your warehouse, or the shipment happening between the buyer and yourself.
The delivery of the packages will depend on everything, from the original location, to the timeframes that are given, to the methods of shipping that are used, the pricing and any discounts and so on. All of these factors will depend on whether the delivery is local or on a global lever and examples of logistics providers of this kind are FedEx, DHL, UPS, USPS in the USA and so on.
Warehouse and distribution based
This is actually the most common type of 3PL third party logistics provider that business owners tend to use as they start to grow. These types of providers will not only take care of the shipments, but they will also take care of any storage or returns that may happen. These types of providers are good for your business because they have warehouses of different sizes that are able to fit a lot of products in them and they are a good way for you to make sure that you are getting the products to your customers as fast as possible.
Thanks to marketplaces like Amazon, people now expect to get their shipments in one or two days, or even on the same day as when the order was placed, and thanks to these providers that have warehouses all over the world you are able to give your customer that experience, even on a global level. Some examples of providers like these are Shipwire, Fulfilment by Amazon and Rakutan, and each and every one of them is a good option for you to check out.
Financial and information based
The last type of logistics providers that we are going to talk about is the financial and information based one and this is the type of provider that companies go for only after they hit the eight or nine figure mark in terms of the revenue that they are bringing in. Even though this is the case, they are still very important for us to mention, and for you to know about, because they have the ability to give you insight into the industry and the current trends which will be very valuable to you.
If you get to the level where you have to use these types of providers then it is good for you to know that they will help you optimize your logistics network in its entirety, they are usually owned by third parties and they come with tools for inventory management, booking, tracking and so on, and all of these elements will be very useful to you.
Now that you are more familiar with the tree types of 3PL third party logistics providers, you will be able to move forward with the process with a lot more confidence and you can be sure that you won’t make a mistake. Make sure to learn as much as you can about all of the, even the last type, since a well-educated business owner is a successful one as well.