3PL

Feb 10 2020

3PL

Third-party logistics, which is often shortened to 3PL or TPL is a field of logistics and supply chain management. In this field, an organization uses a third-party to outsource certain parts of its fulfillment, warehousing, and distribution services. For this reason, this field is called third-party logistics (3PL).

One of the most common uses of third-party logistics comes in the form of using a 3PL warehouse. Those who specialize in the use of a 3PL warehouse often have integrated the needs of both warehousing and transportation services. This, this company can leverage these services by scaling them to meet the needs of the customer. Furthermore, because these companies are specialized in this area, they can also adjust to meet the demands of both the market and the customer, protecting and delivering goods in a reasonable timeframe. As the economy continues to evolve, 3PL companies are only to become more common.

What is 3PL

As mentioned above, 3PL is the use of a third-party logistics company to control distribution, warehousing, and fulfillment. What is 3PL typically involves the use of freight forwarders and courier companies who can help meet these needs. Furthermore, what is 3PL is often broken up into different categories. Some of the types involving 3PL for dummies include:

The standard 3PM provider who carries out activities such as warehousing, pick, and pack, and logistics. This is the most basic of the 3PL companies, making them the ideal example of 3PL for dummies.

  • A service developer is another common example of 3PL companies. This provider uses value added services including cross-docking, specific packing, tracing, tracking, and even an advanced security system. Those who have more valuable inventory might want to invest in a service developer.
  • The customer adapter is a 3PL company who responds to the customer’s requests and essentially takes over complete command and control of that company’s logistical functions. This company is able to dramatically improve existing logistics services; however, this company cannot add new services.
  • The customer developer is largely seen as the most advanced of the third party logistics companies. Among third party logistics companies, this provider can not only integrate and take over the client’s existing logistics functions but can even add new services and perform detailed tasks.

One of the largest logistics companies in the world is called XPO Logistics. XPO Logistics operates in more than thirty different countries globally. Furthermore, this company also employs more than 100,000 people and services over 50,000 customers. XPO Logistics also services close to 70 percent of the companies listed on the Fortune 100. This company is headquartered out of Greenwich, CT, which is a short distance from New York City. XPO Logistics is a model of what other 3PL companies aspire to be.

3PL Logistics Company

There are numerous 3PL examples that serve as models for what a 3PL logistics company might want to be. With so many 3PL examples, should not be hard for a company to find 3PL companies near me. Furthermore, as the economy continues to grow, companies that use 3PL are only going to grow. Some examples of a top-notch 3PL logistics company include XPO Logistics (as mentioned above) in addition to CH Robinson, UPS Supply Chain Solutions, JB Hunt, and Expeditors. In addition, there are numerous companies that use 3PL listed on the Fortune 100. This might help those who are interested in finding 3PL companies near me.

Furthermore, 3PL companies meaning has expanded globally in recent years. There are 3PL companies all over the world. Some of the top 3PL companies in India include Gati, ABC India, and Aegies Logistics. With numerous companies looking to expand in this region of the world, the number of 3PL companies in India is only going to continue to grow.

In addition, there are lots of 3PL companies UK as well. Some of the top 3PL companies in UK include XPO Logistics, Turners, Gist, and TNT Express. As London continues to be one of the major economic capitals in the world, this industry is only going to continue to grow in the UK Europe as a whole. This is going to cause the 3PL companies meaning to continue to evolve as the industry expands.

Top 10 3PL Companies

With the rapid growth of the industry, the top 10 3PL companies is an ever evolving list. Therefore, it can be helpful to look at the top 10 3PL companies by year and by region. The top 3PL companies 2019 included names such as Echo Global Logistics, Transplace, Hub Group, Werner Logistics, GlobalTranz, and DHL Supply Chain. The top 10 3PL companies in the world 2019 also included a few ties. Furthermore, the top 3PL companies 2019 was a little bit different from the top 3PL companies 2018. Some of the top 3PL companies 2018 included names such as Dynamic Logistix, ecUtopia, EmergeTMS, Freight Exchange Network, and Infocon Systems. With the rapid growth of the industry, it is interesting to see the growth and turnover when comparing the top logistics companies in the world 2018 to the top 10 logistics companies in the world 2019.

In addition, the top logistics companies in the world 2018 is a little bit different from the top 3PL companies in India. Companies such as Safexpress, DTDC, Agarwal Packers and Movers, and First Flight make up the list of the top 3PL companies in India. As India continues to grow as a n economic powerhouse with a growing customer base, there might be some crossover between the top 10 3PL companies in India and the global rankings. The top 10 3PL companies in India have a chance to expand globally.

3PL Central

One of the major players in the industry is 3PL central. 3PL central is one of the top companies when it comes to warehousing, technical services, and customer success. There is a convenient 3PL central login that clients can use to manage their accounts and look at the products. Following the 3PL central login page, companies can also access 3PL central support. 3PL central support is where everyone can go to ask for help from this outstanding company.

For those looking to get a job in this industry, 3PL central careers offer a lot of growth and potential. 3PL central Glassdoor is the hub for people who are looking to get involved with this company. 3PL central training is outstanding and prepares everyone for 3PL central careers. Furthermore, there is even information about 3PL central training on 3PL central Glassdoor. As 3PL central continues to gather glowing reviews from clients, this company is only going to grow.

Third Party Logistics Advantages and Disadvantages

The third party logistics definition is only going to grow and expand as the industry continues to grow. The third party logistics industry has shown record growth over the past few years thanks to the growing demand for its services. Therefore, it can be helpful to take a look at the third party logistics definition by looking at some of the third party logistics examples. In addition to XPO Logistics, there is also Nippon Express, CH Robinson, and DSV. These are only a few of the top third party logistics examples and the third party logistics industry is only going to continue to grow.

For those wondering how to start a third party logistics company, it can be helpful to look at the third party logistics advantages and disadvantages. Some of the major advantages include the ability to outsource logistics work to a company that specializes in this field, freeing up resources to address company growth and customer acquisition while also efficiently meeting the demands of existing consumers. On the other hand, when someone outsources logistics work, they also lose skills and infrastructure in addition to sacrificing some control when sending inventory to an unknown third party. It is important for those wondering how to start a third party logistics company to think about the third party logistics advantages and disadvantages.

3PL vs 4PL

In addition to 3PL, there is also an industry called 4PL. 4PL companies are a little bit different from 3PL. When comparing 3PL vs. 4PL, 4PL companies handle the entirety of the supply chain. In contrast, 3PL companies typically address just the logistics process. In addition, when comparing 3PL vs 4PL, it is important to think about the 4PL advantages and disadvantages. Some of the advantages of 4PL include the ability to outsource the entire supply chain to a company that specializes in this function from top to bottom. On the other hand, companies are also placing a lot of trust in a relative unknown. Companies need to vet the 4PL advantages and disadvantages carefully as they are trusting their entire supply chain to another entity.

In addition, fourth party logistics Wikipedia shows that fourth party logistics companies provide many of their own assets, including trucks and warehouses. Fourth party logistics Wikipedia also shows that these companies are growing quickly, similar to their 3PL counterparts. It remains to be seen how this industry, along with 5PL, is going to respond. 3PL vs 4PL vs 5PL are all very different. The 5PL logistics network includes not only supply chains but supply networks as well. As a result, the differences between 3PL vs 4PL vs 5PL may continue to grow and evolve over the years.