Businesses face many hurdles and complexities when getting their products from their factories or distribution center to the customer’s door. Such hurdles include implementing the cargo delivery services itself, the overall costs involved with running a fleet of vehicles, and handling freight forwarding, which is why more and more companies are turning to third party logistics (3PL).
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But what is a 3PL delivery? And how it can help you improve your logistic network and operational performance?
What Is A Third Party Logistics?
3PL, though it sounds redundant, stands for third party logistics. Imagine you run a business that sells products. Instead of handling all the shipping, storage, and delivery yourself, you can hire a specialized logistics company – a third party logistics provider. Their core expertise is managing the entire supply chain process for you.
Most 3PL logistics providers can scale down and maximize resources and profitability during procurement. With many services offered to encompass 3PL supply chain activities which is contrary to what contract logistics is for, third party logistics provider is expected to optimize the company’s logistics framework process.
A comprehensive 3PL will offer the following services:
- Freight forwarding
- Cargo delivery
- Point-to-point delivery
- Driver provisioning
- Distribution network optimization
- Route optimization
- Warehouse management
- Inventory management
- Order fulfillment
- Supply chain management
3PL vs. 4PL: Differences Explained
4PL stands for fourth-party logistics. A 4PL is a company that provides a comprehensive outsourced logistics solution that combines the core competencies of leading service providers with its management resources and technology to create a seamless, end-to-end solution.
4PLs are often used by companies who have complex supply chain needs or who want to outsource their entire supply chain operation. 4PLs typically provide transportation management, warehousing, order fulfillment, and inventory management.
The main difference between 3PL and 4PL is that 4PLs provide an end-to-end solution while 3PLs provide fragmented solutions. Additionally, 4PLs have their management resources and technology while 3PLs typically do not.
Types of Services Offered by Third Party Logistics Providers
Third party logistics providers offer a variety of helpful services to make supply chains run smoother and improve business operations. Some key services they provide include:
Transportation Management
They handle all your shipping needs, from managing a fleet of delivery trucks to coordinating freight shipments. Their expertise allows them to plan optimal routes and consolidate shipments, reducing transportation costs.
Warehousing Solutions
Third party logistics have warehouse facilities to store inventory securely. These warehouses often use advanced technology to track inventory levels accurately and manage stock efficiently.
Inventory Management
With sophisticated systems and know-how, third party logistics can maintain just the right inventory levels for your business. This helps avoid costly excess inventory while also preventing stockouts.
In essence, third party logistics providers act as an extension of your business’s logistics arm, providing services and capabilities to streamline the supply chain from transportation to inventory management. Their scale and expertise can lead to significant cost savings and operational efficiencies.
Not Sure if You Need a Third Party Logistics? Assess Your Needs
The main benefit of using a third party logistics company in the Philippines is that it can save your business time and money. Managing your logistics can be costly and time-consuming, especially if you’re not experienced.
A 3PL can help you to streamline your processes, make your operations more efficient, and ultimately improve your bottom line.
Not sure if you need a 3PL? Here are some signs that it might be time to outsource your logistics:
- You’re growing quickly and need help to keep up with the demand.
- You’re expanding into new markets or opening new locations.
- You want to focus on your core business and leave logistics to the experts.
- Your current logistics solution is no longer working for you.
- You’re not happy with your existing logistics provider.
If any of the above sounds familiar, it might be time to consider using a third party logistics company.
Industries That Use Third Party Logistics The Most
There’s no one-size-fits-all answer to this question, as the use of 3PL services varies widely across industries. The Fortune 500 companies even use such services to maintain high service levels, especially if delivery and fulfillment are an integral part of the company. However, some of the most common users of 3PLs include retail, manufacturing, and e-commerce businesses.
There are many reasons why these industries use third party logistics. The most common reason is to outsource their logistics needs so they can focus on their core business. Other reasons include accessing the expertise and resources of a third party logistics provider, reducing costs, and improving service levels. This also relieves companies from the workforce that they can cut spending on, saving them wealth and sales.
Third party logistics providers offer a comprehensive range of logistics services that you can customize to meet the specific needs of each client. They have the experience and expertise to handle all aspects of the supply chain, from cross-docking, transportation, and warehousing to order fulfillment and customer service. In addition, they often have access to cutting-edge technology and resources that can further improve efficiency and service levels.
Outsourcing logistics to a third party can help companies reduce costs, improve service levels, and focus on their core business. Therefore, it is important to choose a reputable and experienced provider that can meet the specific needs of your business.
What Exactly Do Third Party Logistics Providers Do for Online Businesses?
Third-party logistics providers provide more than simply shipping services. Many suppliers specialize in various regions within a country. In addition, many storage companies have extended their services by adding shipping services to public and how important contract logistics in SCM and in freight consolidation. Some businesses also offer different types of freight transport to customers.
Third-party logistics is dependent on technology. Modern supply chain management is concerned with optimizing inventory control and the rapid provisioning of products, which began with simply storing items. Organizations that utilize third-party logistics may provide extra services such as demand forecasting, detailed reports, transportation management software, and freight bill auditing.
Setting up the Perfect Business Delivery Routing Guide
There are many 3PL carrier companies out there, each of which works differently regarding guidelines and cost. Some measure via cargo weight limit, while others look at petrol consumption and overall mileage. With point to point business delivery, finding a 3PL carrier with an excellent logistics strategy designed to save you money while improving your overall delivery capabilities is essential. Here are some key points to set up the perfect business delivery routing guide with the help of 3PL carriers:
Implement scorecards as tracking tools
When trialing various 3PL carriers, it is important to track essential data and performance indicators if you wish to find a permanent and reliable solution. You can implement scorecards to effectively track and analyze data on a weekly basis—thus being able to identify ineffective aspects of your routing guide and being able to amend the issues quickly.
Having the best possible fleet for your logistics needs requires being vigilant in tracking specific metrics. Remember to measure all the things that matter to your operational performance as it will help you define what service is best suited to your needs.
Communication is always key.
The best 3PL logistics companies will always have an open and accessible line of communication available for you to use. For example, we have a comprehensive application that can be used by our clients so that you can track and contact your delivery drivers at all times. This information is invaluable when staying up to date with current movements and offering clients accurate ETA’s on point to point delivery. This means that if your ten-wheeler truck is falling behind schedule or caught up in traffic; you will be notified immediately. In addition to that, the sophisticated nature of our GPS tracking capabilities also allows us to update and re-route drivers in real-time.
Transportify is an example of a 3PL carrier that offers state of the art GPS technology for business delivery services. This unique feature allows individual bookers and business clients to get real-time updates on their deliveries.
Simplicity is essential.
Try to avoid a 3PL carrier, which seems to complicate matters unnecessarily. Your routing guide should be as simple as possible to achieve optimum results. So, outsourcing your requirements to a large 3PL with the infrastructure in place and the technology to make all of your deliveries with the utmost accuracy will be your best option.
Technology and cost-saving potential
Going back to the GPS tracking application that we use, you should endeavor to work with a 3PL carrier with something similar. Using dated and static routing systems is a thing of the past. Instead, it would be best if you focused on sophisticated technology that can not only offer you the optimum routing systems but allow the tracking of valuable data with ease, demonstrating your cost-saving potential.
Do your due diligence.
It is important to find a 3PL delivery partner for business that you are happy to work with and trust with being the face of your business. Don’t forget, saving money is important, but so is the overall level of customer care that you offer. Meeting deadlines and making same-day deliveries with continued precision is an important aspect of growing your business. It would be best for your customers if you are consistent in delivering goods on time. Thus, you need to do your research when finding an excellent third-party logistics company to work with.
Of course, if you’d prefer to keep your logistics requirements in house, then there is always the option to procure a ten-wheeler truck or vehicle types for delivery. However, we wholeheartedly recommend exploring the 3PL carrier option, as in most cases, you will be able to save a lot of money on manpower and execution.
In any case, be certain to track performance and regularly revisit your routing guide in order to improve it. As your business grows, you will need to modify your routing system to keep up with higher demand. By constantly improving your services, you’ll continue to flow smoothly into the future.
The Role of 3PL Providers in Solar Power Supplies Delivery
3PL providers although may differ in expertise in diverse logistics roles, can significantly contribute to a variety of business types. Businesses can concentrate on their core skills while guaranteeing the effective management of their logistics operations by contracting out these tasks to a 3PL.
Transportation Efficiency
3PL providers can ensure on-time arrivals, track shipments in real time, and optimize delivery routes with the use of cutting-edge technologies like Transport Management Systems (TMS). When these technologies are used properly, supply chain transparency is increased and businesses are able to keep an eye on their solar power supplies and make any necessary adjustments quickly.
Challenges and Considerations for Solar Power Supplies Delivery
Although working with a 3PL service provider has many advantages, companies should be prepared for some possible drawbacks as well:
Loss of Control
It can be difficult to incorporate a 3PL service provider’s systems into already-existing business procedures. In particular, while handling the logistics of solar power supply, it is imperative to provide efficient API interaction with enterprise resource planning (ERP) and warehouse management systems (WMS) to support smooth operations.
Integration Issues
It can be difficult to incorporate a 3PL service provider’s systems into already-existing business procedures. In particular, while handling the logistics of solar power supply, it is imperative to provide efficient API interaction with enterprise resource planning (ERP) and warehouse management systems (WMS) to support smooth operations.
Dependence on a Single Provider That is Not Reliable
If a single 3PL service provider has problems with operations or falls short of customer expectations, it might be dangerous to rely solely on them. Businesses can think about diversifying their providers or putting their faith on a reliable 3PL like Transportify to reduce this risk.
In conclusion, partnering with a reliable 3PL service provider like Transportify can greatly enhance the efficiency and cost-effectiveness of delivering solar power supplies. By leveraging advanced technology, extensive networks, and scalable logistics solutions, Transportify ensures timely and reliable deliveries. This allows businesses to focus on their core strengths while trusting that their solar power supplies are in good hands. Choose Transportify to streamline your logistics and meet the growing demands of the solar power industry.
Will 3PL Work for Any Size of Business?
A benefit of using a third party logistics provider is that it can improve logistics operations for a business of any size. Logistics providers can provide a business with as few or as many services as are needed. For example, a smaller company may only require shipping or warehousing of goods, while a larger company may want the provider to offer them a bundle of services to manage their entire supply chain. Increased efficiency in these areas allows a business to grow while successfully managing its bottom line.
How Can You Benefit From a Third Party Logistics Provider?
Using third-party logistics providers or 3PL logistics can really help businesses streamline their supply chain operations and boost efficiency in several ways:
It saves money
Third party logistics provider have the expertise and resources to optimize routes, get better freight rates, and generally run logistics more cost-effectively than individual businesses could on their own.
Improves efficiency and customer service
With sophisticated logistics solutions, orders get fulfilled faster and more seamlessly, keeping customers happy.
Access to Specialized Logistics Expertise
Third party logistics live and breathe supply chain management – they stay on top of the latest trends, technologies, and best practices in the industry. Rather than having to develop that expertise internally, businesses can leverage the 3PL’s know-how.
Third Party Logistics Experience with a Construction Materials Supplier
Many businesses have seen significant improvements in their supply chain management and increased profitability by partnering with 3PL providers. This is testified by Aerkrete Building Solutions, Inc. in partnering with a third party logistics provider like Transportify. Ms. Viene Alexis Yu mentioned the important role of Transportify in their logistics operation, “I believe it is essential to commend the exemplary support we received from Transportify which has been instrumental in the growth of our company. The courtesy and patience shown by their representatives made us feel valued as a customer, and their unwavering commitment to addressing our concerns promptly and effectively left a lasting positive impact. This further solidifies our trust and loyalty and I wholeheartedly recommend their services without hesitation.”
Tips for Choosing a Reliable Third Party Logistics Provider
Don’t just go with the first 3PL you come across. Doing your homework upfront can save you a lot of headaches down the road. Look for a provider that’s truly invested in understanding your business and its unique needs.
See what kind of tech they’re packing.
You want a 3PL that uses modern systems that’ll mesh seamlessly with your operations. Outdated tech is a recipe for chaos.
Experience matters, big time.
A 3PL that’s been around the block in your industry knows the ropes. Read some reviews and case studies to get a feel for how they’ve performed for others.
Make sure they can bring the full package.
If you need specialized services beyond just shipping and warehousing, ensure the 3PL can deliver on those fronts too. Don’t settle for a one-size-fits-all approach.
Communication is crucial.
A 3PL partner should be highly responsive and proactive about addressing any hiccups. You want someone who’ll go the extra mile, not just stay in their lane.
At the end of the day, picking the right 3PL is about finding a partner invested in your success. With some due diligence, you can team up with experts that’ll help streamline your supply chain for the long haul.
3PL Logistics Provider Highlights from Asia Logistics Summit
Transportify Philippines’ Co-Country Director and Head of Sales and Marketing, Noel Abelardo, was one of the featured presenters at Asia Logistics Summit 2017, the nation’s premier logistics industry event. The event was held last November 24, 2017, at the Manila Marriott Hotel in Pasay City, Metro Manila.
In line with the event’s core, Abelardo presented a discussion titled Changing Logistics Through Technology. In his talk, Abelardo tackled local 3pl logistics provider matters and how they affect the country’s economy, environment, and social affairs. He also discussed how today’s logistics system is more suited for yesterday’s customers and went on to talk about the real demands of today’s customers, as well as the operational problems that prevent the country’s growth. He also included the benefit of Transportify as an on-demand delivery app. Abelardo ended his discussion by emphasizing how technology can be a solution to improve the Philippines’ logistic problems.
Aside from Abelardo, other speakers from different 3PL logistics provider such as LBC, UPS, Airfreight 2100, and many others attended the event. Asia Logistics Summit 2017 brought together the elites of the business world that are changing the supply chain logistics services and management, not just in the Philippines but all across Southeast Asia, to share and present ideas that can help improve the economy.
Asia Logistics Summit 2017 is a full-day event featuring the leaders of the logistics industry. The event was presented by LBC Business Solutions and organized by Asia CEO Events. LBC Business Solutions is an air, sea, and land freight 3PL logistics provider, while Asia CEO is the organizer of the largest business forums and summits in the Philippines.
Choosing the Right 3PL Logistics Provider for Your Business
Moving products from one location to another may sound a bit easy; however, it is harder than people may imagine. So, in 2024, here’s how you can pick the right logistics solution company for your business.
If you are looking for a 3pl delivery provider in the Philippines, you are probably aware of today’s topic. Choosing a 3PL logistics provider in 2024 is not an easy task. Having the correct decision in the right manner will require careful research, extensive number crunching, and thorough consideration.
This is because a modern 3pl logistics company does more than just move goods from one destination to another and make shipment deliveries. A 3PL logistics provider is responsible for planning, implementing, controlling, and tracking the movement of products and information from destination A to destination B.
The 3pl logistics and trucking company should also be responsible for the safety and security of the goods during the transport. Everything that may happen to the packages during the transit should fall under the responsibility of the third party logistics provider in the Philippines.
Reasons You Might Need a 3PL Logistics Provider
Picking the right 3pl logistics company in 2024 is one of the crucial moments for every business. The 3PL logistics provider you choose will significantly impact the level of customer satisfaction and experience you can get.
Moreover, the cost-effectiveness and efficiency of your whole supply chain will solely depend on the business logistics company that you choose. It is a more prominent 3pl logistics selection criterion for every business.
Several 3PL logistics providers manage your business’s entire supply chain process or a particular part of it, like transportation, tracking software, or warehousing. So, depending on your business needs, you can pick a 3pl logistics provider that handles all logistics functions or select a few.
In the Philippines, the need and demand for 3PL logistics provider services have risen these past few years since the fusion of eCommerce and online selling. Online sellers have complex and extensive supply chains; that’s why they need efficient and reliable 3pl logistics providers to manage their products’ movement to make timely deliveries to their customers.
The aspects of a proper supply chain should include transportation, shipping, storage, product handling, security, tracking, management, distribution, packaging, and, lastly, deliveries. Not only that, but 3PL logistics providers should also take care of the added corollaries to the supply chain management, such as taxes, licenses, and regulations. Coordinating these functions without exceeding the business budget is an efficient and effective 3pl logistics company.
Lots of Options, But Only One Appropriate Choice
This is why picking the appropriate 3pl logistics partner is a crucial decision. Performing all the mentioned functions in-house can cost you a lot. Most importantly, they are time-consuming, as you will need to hire and maintain your entire logistics department for shipment purposes. With that said, it will be too hard for your business to execute these functions, especially if you’re just a start-up or a small business owner with no established players in the market.
This is where outsourcing will play its role. Outsourcing your logistics needs can be supremely beneficial not only for your business but for your employees as well. Many 3PL logistics provider offers economical and competitive rates as well as giving an efficient and timely service.
There are many options when choosing the appropriate 3pl logistics company for your business. However, you need to know that not all of these 3PL logistics providers will be the perfect match for you.
Below is the following list of the things you might need to consider in a 3PL logistics provider. You must do it right when planning to outsource your logistics needs to another firm. Remember these factors, and sure, your business will grow further.
Transportify, as Your Go-to 3PL Provider
Transporting goods and materials from origin to destination isn’t easy. Picking the right logistics provider should be in the company’s best interest. A reliable logistics provider takes responsibility for planning, implementation, tracking, and movement of goods. Business distribution networks are becoming more complex since we are now in the modern era where new technologies are being placed. Therefore, choosing the right provider for logistics solutions became an absolute priority.
Transportify, as your go-to 3rd party logistics and delivery provider, offers various services of the best quality. We offer two types of primary services: full truckload and less than truckload shipping. We are fit to help SMEs and large companies with their last-mile delivery needs and door to door from the distribution center to the point of sale outlets.
Our driver-partners are well-trained in different situations required by the business. The core aspects of supply chain management have been considered while crafting our booking procedures, picking and handling, delivery, tracking, and route optimization. We made sure that our customers would pay the right price for excellent service. So what are you waiting for? Download our app now, and explore excellent services.
Download the Transportify app today!
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What are the advantages of having a third party logistics partner?
🌐 It opens various business opportunities, reduces operational costs, and improves overall logistics service. Your company may now expand if the logistics partner has an extensive distribution network. The company may now de-fleet and soon reduce its operational costs. And a third party logistics partner boosts and improves the process in logistics by trying new systems and methodologies. Transportify can be your go-to logistics partner. We have a wide variety of vehicles and stable market value, which can help your business’s overall logistics integration.
What is the most affordable 3PL provider in the Philippines?
🌐 There are many 3PL providers in the country. The vehicle selection varies on the business requirements. But if your business or company is looking for the most affordable rates for bulk deliveries, you may choose to avail of Transportify as your delivery provider. We have sedans, L300s, closed vans up to wing vans that could fit your palletized goods.
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