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Logistics Consulting FAQ:What is a Third-Party Logistics (3PL) Provider? |
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| Third-party
Logistics Provider (3PL) performs logistics services on behalf of
another company. 3PLs provide the management skills along with the
physical assets, labor, and systems technology to provide
professional logistics services,
relieving companies of the responsibility of performing
these services themselves. 3PL's typically can provide transportation,
warehousing, pool distribution, management consulting, logistics optimization,
freight forwarding, transportation management,
rate negotiations,
cost evaluations, and contract management services.
There are two primary kinds of Third-Party Logistics (3PL) Providers: Asset based and non-asset based. An asset-based provider can be a warehouse company, for example, that manages all or part of a client's logistics operations. In such a case, the 3PL provides physical assets and labor resources to perform the required services. Clients using this kind of 3PL generally must use the limited assets of these companies. The second kind of 3PL is non-asset based. This type of provider acts as a service integrator and is not restricted to using any particular warehouse or transportation company in providing services to its clients. Many business managers view the non-asset based 3PL as being inherently unbiased in its decision making on behalf of clients due to its unlimited freedom to work with the varied service providers that best meet the needs of its clients. Business Logistics is a non-asset based 3PL. We customize programs to meet each client's specifications and have the flexibility to move to different providers and our clients needs change over time. Other Questions related to Logistics Consulting:
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