In the world of
logistics and supply chains, we often come across the term '3PL' or 'TPL',
which is an abbreviation for 'Third Party Logistics' and means the outsourcing
of logistics services. This means that a company's management hires an external
company to manage its internal logistics services, such as storage, preparation
of goods, transport, distribution, and others.
Why choose 3PL
services?
The main reason for deciding to outsource logistics services to the outside company and its experts is cost-effectiveness, as
companies offering 3PL services specialize in integrated storage and transport
operations that can be adapted to the needs of customers based on market
conditions. Services often go beyond logistics and include value-added services
associated with the production or procurement of goods, such as services that
integrate parts of the supply chain.
The benefits of 3PL
services
- Focus on the company's goals - The company acquires additional capacity by relocating its activities to outsources. That means the company can reduce the number of employees or move them to perform other, more important tasks
- Cost and time savings - 3PL service providers have better related knowledge and greater expertise than the hiring company, and may also, have more global networks thus enabling greater time and cost efficiencies
- Equipment and IT systems - 3PL Providers constantly update and adapt their equipment and services to customer needs
- Low operating costs - Using a 3PL service, the company does not need to have its own warehouse, vehicles, and persons who would handle it. A good example is the relocation of the distribution to an external provider - the company thus pays only a small part of the usual cost to the provider, rather than covering expenses for purchasing vehicles, maintaining them and paying for drivers.
- Flexibility - 3PL providers can offer greater flexibility in distribution over longer distances and a wide range of other services that the company itself can not provide.
HydraWarehouse
Solution HydraWarehouse offers a 3PL plan with 3PL functionality and Client view for your business. Interested? Visit our website and learn more!
Solution HydraWarehouse offers a 3PL plan with 3PL functionality and Client view for your business. Interested? Visit our website and learn more!
