Third Party Logistics (3PL)

Third party logistics has become increasingly popular in that it saves businesses money and increases

efficiency whilst creating a competitive advantage. As companies are continuously looking for ways to

improve their processes, many are now looking to 3PL for this purpose.

What is Third Party Logistics (3PL?)

Third party logistics involves outsourcing to a logistics company to manage your businesses supply chain.

A third party logistics firm provides numerous logistics services for their customers to use including,

transportation, warehousing, management and packaging.

Benefits:

Major savings and reduction in labor costs

Outsourcing can result in major savings, such as a reduction in labor costs and administration.

Tailored services

Third party logistics have the ability to tailor their services to what is required of them and can offer a

range of solutions for individual companies to reduce their overall costs and increase efficiency. They

can ensure your company needs are met using the most effective, cost and time efficient systems.

Enhanced Shipment Control

Third party logistics can offer enhanced shipment control. The outsourced company can contract and

work with overseas suppliers with their greater booking options and service types. Shipping and

transportation costs become cheaper by combining greater volumes to be transported together.

Access to valuable information

As third party logistics are coordinating for a number of supply chain processes, they have greater access

to software that can provide information on best transport at competitive pricing.

Example

Logistics Services Pakistan (LSP) is a 3PL company, providing its services round the clock and around the

globe.