Third Party Logistics Project Report
Third Party Logistics
What is Third Party Logistics
3rd Party Logistics (3PL) is the supply chain practice where one or more logisticsfunctions of a firm are outsourced to a 3PL provider. Typically, the logistics function consists of following:
Customers and freight consolidation
Management of outbound freight to the client’s customersBesides that, Value Added Services can be provided. 3PL consists of 1.Repackaging2.Assembling3.and Return logistics The 3PL provider manages and executes these particular logistics functions using itsown assets and resources, on behalf of the client company. The thoughts andrational behind these are to keep the firm competitive by keeping it lean withoutowning many assets and allowing the 3PL companies to focus on niche area and toreduce operational costs. 3PL is also referred as
3PL companies are evolving from predominately transactional-based to morestrategic in nature. At the same time, 3PL is gradually evolving into 4PL (FourthParty Logistics Provider). 4PL is a supply chain services provider that searches thebest logistical solutions for its client, typically without using own assets andresources.Relatively new is the term 5PL or even 7PL, indicating Total Supply ChainManagement Outsourcing.