What Is 3PL?


3PL stands for third-party logistics, which is the process of outsourcing logistics functions. Many companies choose this option to save money, increase efficiency, and avoid the learning curve. By going with a 3PL company, businesses can focus on their core competencies and have the peace of mind that their products are being successfully delivered.

The Types of Services Third-Party Logistics Companies Offer

While some 3PLs offer only a single service, such as warehousing. Others provide their clients with an expansive selection of services, such as trucking, air, rail, ocean shipping, harbor drayage, warehousing and value added services.

This gives clients a wide range of options to choose from when shipping their products and allows them to better serve their customers.

Levels of Outsourcing

Not only do 3PLs vary on the types of services they offer. There are also different levels of outsourcing available. For instance, transactional outsourcing is based strictly on transaction, with no contracts and little bonding between the 3PL company and the outsourcing company.

The most comprehensive level is strategic outsourcing. This is when 3PL companies become partners in supply chain management.

Choosing the Right Logistics Company for You

So how do you find the right 3PL for you? Well, you will need to look for a provider that has a thorough amount of experience, a good reputation, and can fulfill all the logistics requirements.

Remember not to just look at price. You also need to consider the types of benefits you will receive as well as the quality of the customer service provided. This will ensure that you aren’t let down by an inexperienced 3PL company.

Cimetra is a full-service logistics company serving clients in Nashville, TN. If you are looking to improve the way you deliver your products to customers, give us a call today!