Third Party Logistics (3PL) service providers have become so integrated into supply chain processes that it seems it is no longer a choice but a necessity to use 3PL providers. Most companies require outside companies to handle and manage their supply chain. The reason; a company that focuses solely on optimising supply chain processes will be better enabled to get your products from point A to B in the most cost and time efficient manner.
Who Uses Third Party Logistics (3PL) Providers?
3PL service providers assists companies with their logistics operations which means that any company with a need to get a product, service or operational component from one point to another can use a 3PL provider. Firms that use 3PL providers outsource their logistics operations to two or more specialist firms.
Why do Companies use 3PL Providers?
Because 3PL providers are supposed to be specialists with regard to logistics management and will make the logistics operations of a firm their sole focus while a firm still needs to focus on all of its other operational processes. In addition, the world of logistics can be a lot more complicated than it seems, meaning that you need to have adequate knowledge regarding shipping processes, regulations, storage methods etc to successfully meet your clients needs and requirements.
What role does 3PL Software Play?
Third Party Logistics Software (3PL) is used by 3PL logistics providers to organise, control, monitor and optimise their clients logistics operations. Logistics software providers also offer software solutions that enable companies to track the progress and have visibility over the operations, progress and service level agreements.
3PL software comprises warehouse , transport, shipping, distribution and transport management and enables visibility, automation, increased accuracy and control in your supply chain. The logistics software solution should be tailored to your unique requirements and should enable an optimsied supply chain, catering to your business needs and ensuring a competitive advantage.