Many businesses do not realize that there are many advantages to using third party logistics providers, also known as 3pl. 3pl logistics companies allow businesses to outsource a portion or all of their logistics to a third party. There are several different types of 3pl providers. For example, some 3pl providers specialize in warehouse storage, while others are set up to handle transportation and delivery services. Some 3pl logistics companies might even provide all of these services.
As said above, there are many advantages to using 3pl logistics companies. For example, because you do not own 3pl logistical resources, you do not have to worry about managing them. This includes things like doing maintenance on delivery trucks and registering permits. You are also free from liability for something that a 3pl provider does. However, the great advantage of 3pl services is that they can be scaled back or increased depending on your business’s requirements. This way, if you have a particularly busy month, rather than having to go out and buy more trucks just for a month, the 3pl provider allows you the flexibility to handle to your increased needs.
The term “3pl” emerged in the late 1970’s and early 1980’s as outsourcing became more and more common. The real turning point in the history of 3pl was when the Motor Carrier Act of 1980 was passed. This deregulated the trucking industry and facilitated the growth of the 3pl industry. Since then, the concept has become more and more refined. In fact, many 3pl providers are targeted at certain industries, such as health care for example.
If you want to learn more about how 3pl works, search online. You can also use the internet to find a 3pl provider who can help your business.