TFI : Quick Overview about 3PL Logistics in UAE

The logistics sector has performed the role of one of the important forces in the process of globalization. In the core of this evolution of the logistics sector puts the standardization & integration of the transport modes & systems to promote the scale of economies and take the whole sector to new heights.

UAE has been on the tip of this wave of improvements satisfying the requirements of the emirates since the late 19th century when the king at that time declared the ports as a free zone. UAE particularly Dubai has exceeded its role as the main hub of the whole Global Logistics Network now which makes it one of the crucial connections in the global supply chain.
The function of 3PL provider –

Rising focus on globalization and expansion in the market has brought more prominent attention on dividing or streamlining the supply chain functions. Third-Party Logistics (3PL) has become a buzzword these days and also a very essential part of the supply chain in the business. 3PL providers offer several services which allow the business people to outsource a part of all of their supply chain management functions. These services include warehousing, distribution, inbound freight, freight consolidation and order fulfillment.


1. Dedicated contract transportation & procurement -

It comprises a contract between the parties one of which is a third party. The contract is a long term issue so both the parties seek to keep things undecayed and transparent between them as long as possible


2. Inventory management -

It involves an effort to balance inventory needs and inventory requirements along with reducing the cost which happens from handling the inventory.


3. Logistics management and consulting -

As the name implies it involves managing the required logistics from the first or second party and delivering better solutions.


4. Logistics optimization -

As we know that 3PL providers perform logistics on account of another party so the optimization of the resources is also an important factor which plays a vital role in determining the efficiency of any 3PL provider.

The emergence of 3PL providers in UAE

The growth of the 3PL companies started in late ’80s of 19th century across the globe, it came a bit later in UAE when the major businesses in the nation started to look for ways in which they could outsource their logistic works and save time & money as well as focus on their core business.


All these factors were evident to the companies in the UAE and they could not resist themselves to choose such outsourcing organizations. Since then, there has been a potential rise in 3PL Logistics. Looking for the best 3PL Logistics company in UAE? Connect with us now: www.tfiworld.com