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What are the origins and advantages of 3PL?

Sep 9, 2022 | 3PL Services

The 3PL outsourcing service allows you to optimize the supply chain and save on logistics processes.

If we add to this that the last link in the supply chain, customer service, has become more important as a driving component in the competitiveness of organizations, it is noteworthy that an integrated logistics service is needed to offer an answer to these demands. new challenges.

This has led to the emergence of different types of logistics operators, abbreviated as 1PL, 2PL, 3PL and 4PL, whose differentiation depends on the level of service offered to optimize the supply chain.

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What do each of them do?

 

2PL was the first stage in the evolution of this kind of operation, where organizations needed the help of another organization to complete logistics tasks, especially when they needed to cover a geographic delivery area, which usually included outsourced transportation. Services.

3PL rose to prominence after manufacturers demanded that a distributor take over storage and shipping processes in order to focus on optimizing their manufacturing processes and product quality. 3PL service is also known as outsourced logistics.

Eventually, the complexity of the markets gave way to 4PL as a more reliable and comprehensive service, including supply chain management consulting and contracting vendors for 3PL-type services to set up, store and transport cast sets.

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What are the benefits of logistics outsourcing?

 

The main one is to reduce operating costs through economies of scale, as well as increase productivity and quality in the service provided to the end customer.

Some other benefits are:

Don’t incur fixed costs, but manage costs as fluctuating costs based on demand and seasonality of products.

Have the most advanced technological tools to optimize routes and ensure proper monitoring of goods.

Access to innovative supply chain optimization proposals.

In addition, 3PL operators have the ability to simultaneously subcontract with a 4PL operator in the case of giant national or global projects to provide storage, inventory, distribution, reverse logistics and traceability services to other destinations.

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How to choose the right logistics operator?

 

The logistics service provider should be selected based on the functionality of the value it brings to the specific needs of the company, especially by valuing these resources:

Have an infrastructure that provides services to brands similar to your organization’s brands to manage the logistics operation.

Experience in the field in which your organization operates.

Ability to provide solutions (in terms of infrastructure and resources) as your business requirements increase. An extensive portfolio of consumers and permits, as well as proven security in its field of activity.

 

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