Total Freight International Blog

Third party logistics (3PL) providers provide the entire gamut of logistics services to companies which allows organizations to concentrate on their core business of production and marketing. If logistics is managed in-house, it means that the company would have to invest in warehousing, storage, fleet and fleet management, delivery centers , drivers and management team. The services usually provided by third party logistics include warehousing, inventory management, shipping and receiving, Full Truck Load (FTL) and Less Than Full Load (LTL), freight shipping, picking and packing, kitting and customization .  Cost Reductions Third party logistics providers may be able to reduce costs in shipping as they work with multiple carriers rather than individual shippers. This helps them getter better rates based on volume and frequency. They also reduce investments on warehouse, logistics staff, technology, transportation and other services. Recent studies have shown that 3 PL service pr...

As business landscape gets very competitive and scale of operations get global. This makes it necessary for companies to focus on their core functions of production and marketing and outsource logistics to third party service providers.  Third party logistics providers undertake the entire gamut of activities of a company related to distribution of goods and services. They act as a middle layer between the manufacturer and the end-user.  They either own or lease storage facilities and get the best deals with shipping companies which reduces the overall cost of distribution. Advantages Third Party Logistics (3 PL) helps companies securely grow business in new markets and promote global trade. It helps companies save time spent on distribution and warehousing. For 3 PL to succeed, the partnership between the logistics service provider and the company should be a long term contract. Leveraging and Flexibility 3 PL service providers help companies leverage their vast resources wh...