What is a 3PL logistics provider?
What is a 3PL logistics provider?
Logistics is a demanding activity, requiring time, meticulous organization and sufficient space to store goods. Once the flow of sales becomes significant, and the company no longer has the resources to meet demand, it may be worth outsourcing logistics to a 3PL provider. This service provider offers a number of significant advantages to help you grow your business.
In this article, we'll explain the role of the 3PL, its advantages and how it differs from other logistics providers.
What is a 3PL in logistics?
3PL logistics (Third-Party Logistics provider), also known as third-party logistics or outsourced logistics, is an e-logistics service outsourced by a company to a service provider. The service provider handles all or part of the company's logistics, including storage, order preparation and goods transport.
The 3PL logistics provider becomes a true intermediary between the company and its customers.
The advantages of a 3PL logistics provider
The 3PL logistics service provider offers comprehensive services to support companies in their logistics operations. Find out more.
Save time
First and foremost, a logistics provider saves time. Logistics can quickly become a time-consuming activity, encroaching on your day-to-day professional tasks. Outsourcing your logistics to a 3PL provider allows you to focus your energies on your core business and get your business off the ground.
Save money
Secondly, you can save money. Your logistics expenses will be minimal, as you won't have to bear the costs of warehouse rental, dedicated structure and employees. What's more, you'll also benefit from the economies of scale achieved by logisticians through their negotiations with carriers. In fact, transport rates are lowered because the volume of goods shipped by logisticians is high, giving them considerable negotiating leeway.
Fast delivery
Today's consumers are instantaneous. They need companies to be responsive. That's the advantage of 3PL service providers. When a customer places an order, they can react quickly, because storage, order preparation and parcel dispatch are located close together. This speed increases customer satisfaction.
What's the difference between 1PL, 2PL, 3PL, 4PL and 5PL?
These categories correspond to a classification of logistics service providers according to the services they offer. They represent the different degrees of involvement of the provider when called upon.
1PL "First Party Logistics
1PL, also known as "auto-logistics", is a company that manages its logistics in-house. It organizes its own logistics activities and has the resources to meet its needs. A 1PL may be a manufacturer, wholesaler or retailer, for example, who manages its logistics process without outsourcing to a third party. Amazon, for example, is a 1PL because it manages its own logistics. A second example is a farmer who delivers his own eggs to a food store.
2PL "Second Party Logistics
2PL is a logistics provider that offers transport services to partner companies. To this can be added warehousing, storage, customs procedures...
This could be a freight forwarder, a shipping company, a freight broker, an export management company, a truck management company...
He is not the owner of the products, and only manages the delivery of goods from the warehouse to the end customer. For example, the farmer entrusts his eggs to a carrier for delivery to the store.
3PL "Third Party Logistics
3PL is an external logistics provider that offers services for some or all of a customer's logistics operations. It offers more comprehensive logistics solutions, such as warehousing, storage, inventory management, order preparation, transport, etc.
4PL "Fourth Party Logistics
4PL is a comprehensive, integrated logistics service that covers the entire logistics process, from planning to execution. It works with a network of logistics service providers to offer comprehensive, customized and optimized logistics services. It offers more in-depth management of the supply cycle. It could, for example, manage a farmer's production, so that he slows down or increases it according to store demand. In other words, the 4PL manages and coordinates all supply chain flows.
5PL "Fifth Party Logistics
5PL is an emerging concept in logistics. It provides all the advantages offered by 4PLs, and handles the management of 3 systems: Order Management System (OMS), Warehouse Management System (WMS) and Transport Management System (TMS). It provides a strategic logistics service for companies by offering consulting services. Customers outsource their entire supply chain to a logistics service provider. The difference between a logistics service provider and a 4PL is that they offer engineering services, setting up automated systems to improve supply chain performance: ordering systems, inventory management systems and shipment management systems. They can use cutting-edge technologies such as artificial intelligence, big data analysis and the Internet of Things.
Choose Boost as your 3PL logistics provider
Our offers
Boost is a 3PL service provider that manages your e-commerce logistics from A to Z. In fact, we offer complete solutions for companies: we receive products in the warehouse, then take care of putting them into stock within 24 hours, and manage inventory. When an order arrives, we carefully prepare the parcel and then entrust the products to the carriers for dispatch.
What makes us different
Boost enables its customers to outsource their logistics with a complete logistics service and a cutting-edge digital solution to develop their sales. This technology enables you to monitor your stock in real time, check on the progress of the day's orders, and speed up order processing times by connecting the solution to your website.
All our customers can connect our solution to their websites and marketplaces, as well as to the main carriers on the market. What's more, we carry out quality control as soon as we receive the goods.
The values we aspire to
Our company reflects our convictions. We believe that greener, more socially responsible logistics is possible. Indeed, environmental and social issues are at the heart of our concerns. In response, we have put in place various solutions to limit our impact and take social action. For example, we use reusable and eco-responsible parcels, and employ people from disadvantaged neighborhoods. Find out more about our values on our website.
The 3PL is a complete logistics solution ideal for meeting the needs of companies. It enables them to concentrate fully on their core business and develop their sales.