Third party logistics

Third-party logistics Third-party logistics (3PL) is the utilization of an outside firm to perform some or all of the distribution functions presently performed internally. As companies better understand integrated distribution and as distribution leadership better understands the costs of distribution, there will be an increasing trend toward the outsourcing of portions of the distribution function. 

Third party/outsourcing More intelligent use of third-party logistics (3 PL) is the norm so that organizations can focus on core competencies. 

Piper Jaffray Equity Research (1999), Third-Party Logistics, January, p. 18. 

What are some of the benefits of using a third-party logistics provider ... 

At the start of European integration, in 2002, a large fraction of the shipping (around 60% of trucking) was by private fleets, but third-party logistics (3PL) options were emerging. 

To illustrate these points, let s take a closer look at a specific industry—consumer products—and the dynamics of its nnderly-ing value network. The consnmer value chain is composed of many companies. It stretches from the consumer through a network of retailers, mannfactnrers, and suppliers. Other industries—transportation, third-party logistics firms, freight forwarders, and marketing agencies—play snpporting roles. It is not linear. Instead, it is a network of hnndreds of companies. Each company within the chain operates multiple supply chains. The industry has worked hard to be collaborative however, today few interactions are truly collaborative. They lack alignment and a win-win value proposition that can sustain the test of time. 

The 4-tier post-sale reverse logistics network presented in this study consists of production plants, repair facilities, collection centers, and disposal centers (Fig. 26.1). A third party logistics service provider (3PL) is responsible for providing... 

A consignee, or third-party logistics firm, or shipper... 

This scenario states a third-party logistics firm or shipper to query for the status of one or more shipments and a transport service provider to respond to the query. 

Third-party logistics providers. Using logistics specialists to fulfill basic supply chain functions will enable companies to focus on core competencies. 

One can also foresee the time when third-party logistics companies will be required by their customers to comply with standards like these. Many companies will not prepare and will not survive in the more demanding environment. 

The projection of warehouse items five to ten years into the future, considering direct-store-delivery (DSD), and store-direct items from other wholesalers (such as Certified Grocers and frozen food third-party logistics providers)... 

This case describes the role of consolidation centers in the lean supply chain. The description here articulates the rules for designing a consolidation center, a supply chain middle man that makes the total chain more effective. Consolidation centers are playing an increased role in many supply chains, particularly as feeders to manufacturing operations that produce complex products with many components. Every supplier cannot or will not link its operations with its customers. The consolidation center enables this linkage — at least until better suppliers can be found. In some cases, consolidation centers are under the control of third-party logistics providers responsible for ordering material, its transportation, and its preparation for the manufacturing center. 

Breadman A term applied to automatic replacement of inventory by third-party logistics providers, normally distributors. The analogy is the breadman who replenishes stock in the grocery store on a regularly scheduled basis. A related term is milk run. The term can also apply to types of vendor-managed inventory. 

Third party logistics provider A company specializing in performing logistics-related services for its customers. Examples include warehouse, transportation, and product assembly. Also called 3PL. ... 

Langley Jr., C.J., G.R. Allen, and G.R. Tyndall, " " Third Party Logistics Study Results and Findings of the Sixth Annual Stud/ 2001. 

Whether to outsource transportation decision making and execution to a third party logistics (3PL) provider... 

The distribution tier receives customer requirements and is responsible for delivering required products or services. It involves such general units as warehouses, distribution centers, and cross-docking points. These units are grouped into distribution sub-tiers. Alternatively, supply chain units in the distribution tier can be classified as wholesalers, retailers, and brokers. Third-party logistics providers present a special case for belonging to the distribution tier. In some situations, these can be represented by a single supply chain node. 

Choice of distribution charuiels. Values these decisions assume include Internet-based distribution, third-party logistics, direct sales, quick response, continuous replenishment, and vendor-managed inventory. Some of the policies may be represented in relation to the horizontal extent dimension. For instance, the direct shipment policy implies the absence of intermediate distribution tiers. Multiple distribution strategies can be used in a single supply chain... 

AA (Application Area) 3PL third party logistics and maritime, ACE Aircraft, APL Apparel, BIE bioenergy and energy, CH chemicals, CNM consumer goods, CRM construction materials, EL electronics, ED food, FRN furniture, MN machinery and equipment, MTL metal, MV motor vehicles, PHM pharmaceutical, PPR pulp and paper... 

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