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Cover Story of this week: Celebration of WORLD MARITIME DAY 2020- NMDCC Chennai host webinar - organised by CMMI, IMI(E) and The Nautical Institue






STUDENTS' CORNER - 116

Now, we will look into 3PL, that is, 3rd Party Logistics.
It is obvious that 3PL forms a part of Logistics and Supply Chain. A business involves basically one who manufactures and the other one who buys what is manufactured.  Only these two parties are fundamental units for any business and other intermediaries are made possible because of these two basic pillars of the Business.
Out-sourcing has grown into almost an integral component to any enterprise. A manufacturer uses another business, or a party who sells some very important part of the product to the manufacturer who instead of manufacturing that part of the machine, so to say, buys it from the other party. In business language, the manufacturer outsources that part of the machine; that is, he gets that part from outside, he outsources that part of the machine.
3PL means a company is using the third party to outsource some elements of the company’s distribution.
Generally 3PL targets some particular functions that facilitate smooth administration of a business; they are usually raw materials provision, warehousing and transportation.
Some popular examples of 3PL are courier, express and parcel services, freight forwarders and transshipment providers.
The Third Party supplier or service provider is not directly controlled by either the seller, the first party or by the buyer, the second party.
There are some types of 3PL providers; they are Standard 3PL Providers, Service Developer, Customer Adapter, Customer Developer, Transportation, Forwarder, Warehouse Distribution and Shipper Management.
Let us see how these types of 3PL serve the businesses.
Standard 3PL Providers: These types of 3PL providers perform the most basic logistical functions like warehousing, packaging and distribution for their clients. Their services depend on the requests of their clients.
Service Developer, as the word develop indicates, these types of 3PL providers offer additional options; they offer support in IT, in security, in special kind of packaging, and also product tracking. They in fact ensure that your product is delivered to your customer in time and in good shape.
We will look into the other types in our next session.