How 3pl Can Help Your Business

3pl warehouse

Did you know that 3pl logistics companies can help you save money by allowing you to outsource all or parts of your logistics chain. The 3pl stands for third party logistics. As said above, essentially allows you to outsource a portion or all of your logistics to a third party, hence the term. There are different kinds of 3pl providers. For example, some 3pl providers specialize in warehouse storage, others may be set up to handle transportation and delivery. Other 3pl providers may provide all of these services.

There are several advantages to using a 3pl provider. For one, because you do not own these logistical resources, you do not have to worry about managing them. For example, if you contract with a 3pl trucking company, you will not have to worry about doing maintenance on the trucks or worry about permits. You are also free from liability for something that a 3pl provider does. Another advantage is that 3pl services can be scaled back or increased depending on your company’s needs. So for example, if you have a particularly busy month, rather than going out and having to buy more trucks just for one month, your 3pl provider will already be able to handle to your increased needs.

The term “3pl” began to be used in the late 1970’s and early 1980’s as outsourcing became more and more common. However, the turning point for 3pl was when the Motor Carrier Act of 1980 was passed. This allowed the trucking industry to become deregulated which 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, like health care for example.

To facilitate the use of 3pl, many providers use special 3pl software. The integration of 3pl software has allowed 3pl companies to deliver even better logistical support. You can learn more about 3pl online.

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