Efficient supply chain management is a key to success in today’s fast-paced corporate world. This is the scenario where 3PL warehouse solutions come into play. In this article, we will explain the meaning of 3PL and benefits of outsourcing your logistical operations to a 3PL service provider.
What is 3PL?
The full form of 3PL is third party logistics. It refers to companies having specialization in managing different aspects of a supply chain. This includes inventory management, order processing, warehousing, shipping and receiving services and other essential logistical support.
Third-party involvement is not limited to only ecommerce fulfilment services and highly required for freight transportation. These service providers coordinate all the aspects from choosing carriers to negotiating rates to detailing pick-up schedules and deliveries while monitoring optimised strategic routes. All these are aimed at ensuring timeline-aligned and cost-efficient shipments.
Fulfilment Companies
These companies play a vital role by providing a comprehensive range of services catering to ecommerce businesses. They have specialization in managing different tasks from order processing, shipping to receiving payment on their clients’ behalf.
Businesses that outsource these logistical services to reputable fulfilment companies can stay focused on core operations like product development and marketing while enjoying benefits of reduced operational costs and improved logistical control.
Freight Companies
Freight companies are an important part of 3PL ecosystem. They provide transportation services for business houses. They specialise in transporting goods from one place to another, through land, ocean or air.
They also handle the actual shipping process. Freight companies provide value-added services such as shipment tracking and customs clearance.
Freight companies are of two types: asset-based and non-asset based. Both form close and continuous collaboration with 3PL to provide transportation services within the wider logistics framework. They operate together to understand every individual client’s specific requirements, coordinate transportation modes, optimise transport routes, manage movements of resources and finished goods between places.
How Freight Companies Collaborate with 3PL
Service Agreements: 3PLs and freight companies enter into contracts and service-level agreements, commonly known as SLAs. This is a way to ensure that transportation services are aligned with required standards for cargo safety, timely delivery and tracking capabilities.
Visibility and Communication: 3PL and freight companies keep communication channels open to provide real-time shipment status, address issues immediately and inform clients about shipment progress.
Monitoring Performance: 3PLs evaluate performance of freight companies based on a range of parameters such as, transit times, on-time delivery, and cargo damages with the sole purpose of satisfying customers.
Evaluation
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Experience the peace of mind that comes with knowing your logistical operations are in expert hands. Elevate your logistics game and unlock new possibilities for growth with Go Experior. Your journey to seamless supply chain management starts here. Trust Go Experior to be your guiding light in the world of logistics.
