3PL OPERATOR: DETAILS YOU NEED TO KNOW
Businesses looking into supply chain optimization often face some issues when choosing a provider. It is difficult to decide on the specific types of required logistics services, considering that this influences customer satisfaction and can possibly lead to losing millions of dollars. What is 3PL and how can it help your company? Learn more from this article.
Nature of the transportation industry
Logistics sphere offers various types of outsourcing services. The terms 3PL, 4PL, and even 5PL are used more often than ever. These simple illustrations will help you understand more about each of them.
3PL operator: example
3PL implies a third-party logistics model, which makes it possible for the business to retain control, while transportation and other delivery operations are outsourced to another company. It may delegate all or part of the services to contractors. As part of this cooperation, the operator offers additional services like packing in crates, boxes, etc. This adds value to the chain of supply. For example, a farmer who transports apples from his farm through a 3PL operator can also order them to be packed in boxes.
Such operations are becoming more and more popular in various countries of the world, including Ukraine. SYNEX LOGISTICS is a well-known Ukrainian 3PL operator. It offers contract, transportation, project and exhibition, as well as customs brokerage services.
What is 3PL?
The concept of a third-party logistics services provider emerged in the 70s. 3PL means that in addition to the recipient, shipper and carrier of the goods, another company takes part in transportation. This entity does not get the right of ownership over the cargo, it only acts as an intermediary between the customer and the transportation company.
At first, 3PL was considered to be a part of intermodal marketing services. Such companies acted as intermediaries between the shippers and railway operators and were listed in the contract as third parties. Currently, any format of hired logistics services constitutes the 3PL and covers the transportation of:
- parts, raw materials, goods from suppliers to manufacturers;
- end products from the manufacturer to the distributor or retail store.
A 3PL operator may not own warehouses, trucks or other assets. Sometimes it acts as a broker, but its field of activities is usually wider. 3PL includes the following services:
- transportation;
- warehouse operations;
- acceptance and transfer of cargo without storing it (cross-docking);
- stock management;
- packaging;
- freight forwarding activities.
Specific types of services are determined by the strategic requirements of the customer who develops rules for transportation and storage of products and materials.
3PL: benefits for business
A 3PL provider is an intermediary with experience in various industries. It can customize services according to the customer’s needs and offer technological solutions. It includes adjusting a supply chain that has become too complex to manage it independently because of mergers, acquisitions or other reasons.
Specializing in logistics, the operator offers special valuable tools that the customer cannot invest in on his own – systems for running the transportation, warehouse and other operations. Long-term relations and large-scale operations allow to save on reduced prices, fees, cost of packaging materials and additional services.
SYNEX Logistics
A 3PL operator offers a chance to implement an innovative supply strategy. With SYNEX LOGISTICS, you can create a cost-efficient chain that reacts to changes quickly. Although the company became well-known in 2022, we have 14 years of experience in managing warehouse staff outsourcing and processes as part of Eclectic Talents Group.
SYNEX LOGISTICS team complies with the international quality management standards and has experience in running all types of cargo and shipping operations using various types of transport.
The quality of supply directly affects the business development, because consumers want fast and cheap delivery. Cooperation with SYNEX LOGISTICS 3PL operator is an effective solution for business optimization, risk reduction and an opportunity to focus on the key business goals.
