3 Types of 3PL Providers You Need To Know About

3 Types of 3PL Providers You Need To Know About

When running a business, order fulfillment is one of the crucial tasks. You have a responsibility of ensuring the buyers receive their purchases at the right place and time. Delays and cases of lost items can taint your online reputation. Also, these issues can harm your customer relations. In this regard, you must work hard to keep your customer smiling through streamlining your deliveries. Engaging a third party logistics company may not be avoidable.

Even with a well-designed and functional logistic system, your orders may be beyond its capacity. Also, you may want to save costs. However, without knowledge of various types of 3pl providers, it can be hard to make the right decision. This article presents the top three third-party logistic providers available for you. Here they are:

Transportation logistic providers

As the word suggests, these 3PLs concentrate on transportation. They transport items from one location to the next. These companies move your inventories from you to your buyers’ location. Alternatively, you may be running a manufacturing firm. If this is the case, you may have warehouses for raw materials or the finished products. The warehouse maybe from your factory. As such, you need to engage a transportation provider. In a word, this type of 3pls facilitates your shipping activities. Popular companies in this category include DHL, FedEx, and UPS.

Warehousing and distribution

With your business experiencing consistent growth, you may need partners to help you offer quality services to your customers. Particularly, for e-commerce ventures, you need to have pickup points near them. However, leasing spacemaybe beyond your budget. You may lack enough revenue to pay for the cost of storage. As such, you need to engage a partner that can help you in this activity. Warehousing and distribution 3pls offer storage, shipping, and return activities. They help your organization to deliver products to the clients at the right time. By this, you win their loyalty and enhance your competitiveness in your niche.

Financial or information basedlogistics providers

When your organization grows to enterprise level, you require large information to make decisions. You need to know about the prevailing trend in your niche and logistics sector. The information 3PLs involve in helping you get the right information on the happening in your industry. They analyze accounting, logistics, and other shipping related activities. Upon this, they provide you with essential information on making the right logistic company choice.

And those are the three types of third-party logistics providers.