3PL Companies or Third Party Logistics Companies are a great tool for many shippers around the world. As more and more companies import from overseas or manufacture in labor cheap countries, the more tey depend on 3PL companies for their logistics needs.
A third party logistics company is one that works with shippers in order to manage another company’s logistics operations department. 3PL is the action of outsourcing activities that are related to logistics and distribution.
Third party logistics providers usually specialize in
- Integrating operations
- Transportation services
- Inventory management
- Order Fulfillment
- Freight forwarding
- Distribution Management
- Freight Consolidation
From establishing a fulfillment solution that meets technical requirements and retailer compliance, to value-added applications that ensure product is perfectly packaged as it heads out of the doors, TPL companies strive to be a one-stop shop for all fulfillment needs.
How to choose your 3PL
It doesn’t come as a surprise that poor service is the leading reason why companies do not renew contracts with their third-party logistics providers, but many 3PLs believe that their customers have unrealistic expectations.
That’s why you need to do your homework before you choose a 3PL and come up with realistic goals. Accessing, selecting and negotiating with a 3PL is a time consuming process—but well worth it,
Communication between both parties is key, as is establishing mutual expectations, but it’s important to give your prospective 3PL an accurate profile of your business, including product lines and volumes, as well as pallet and/or case picking requirements.
You also need to determine if the 3PL is flexible enough to handle surges and special promotions. Work with your 3PL to reap the benefits of the relationship.
As North American 3PLs become bigger and more successful, they could themselves become targets for acquisition by foreign-based transportation conglomerates.
International 3PL is a third party logistics provider specializing in wholesale and retails distribution of a variety of products. International 3PL is considered to be one of the best 3PL Companies in The USA.