What is 3rd Party Logistics?

Third-party logistics (3PL) refers to outsourced logistic services, including anything that involves management of any facet of the procurement and fulfillment including inventory management, packing, picking, and shipping orders. With the growing demand on ecommerce, 3PL’s have become an important part of a successful supply chain.

A 3PL can help you during many different points of your supply chain and it is up to you which point they help with. The major functions of a 3PL includes transportation, global shipping, and information technology.

Transportation

3PL’s will engage with carriers and consolidate the load, keep track of the freight insurance and payment documents, and work with other private fleets. Working with a 3PL can help with driving efficiencies and creating solutions for complex supply chain challenges, while lowering your cost of transportation.

Global Shipping

Global shipping can often be stressful and complicated on businesses. A 3PL will take control of the logistics of global shipping like the customs, freight forwarding, and the consolidation to relieve your allocated money and time for those processes. A partnership with a 3PL will guarantee that all trade compliance requirements are met, and that execution goes as planned.

Information Technology

A 3PL will often use information technology to manage customer relationships, transportation, ecommerce, and warehouse operations. Providing increased visibility to the supply chain process, as well as to the shipments in transit, is the goal of the increased use of information technology.

When you choose to work with a third-party logistics provider it can bring many benefits to your company including, scaling your operations, saving time and money, gaining expertise and knowledge, and avoiding costly mistakes.

When you begin your search for a 3PL consider the services that they offer and the efficiencies they will bring to the movement of your supply chain. G&T Enterprises can offer your Chicago and Midwest company with efficient transloading, derailment assistance, tank car services, and much more!