3P Logistics Services, Freight, Transportation, and Warehousing

A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or "third party" logistics services to companies for part, or sometimes all of their supply chain management function. Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customer’s needs based on market conditions and the demands and delivery service requirements for their products and materials.

Types of 3PL providers:

• Standard 3PL provider: this is the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, and distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not their main activity.
• Service developer: this type of 3PL provider will offer their customers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of scale and scope will enable this type of 3PL provider to perform these types of tasks.
• The customer adapter: this type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company’s logistics activities. The 3PL provider improves the logistics dramatically, but do not develop a new service. The customer base for this type of 3PL provider is typically quite small.
• The customer developer: this is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL provider integrates itself with the customer and takes over their entire logistics function. These providers will have few customers, but will perform extensive and detailed tasks for them.

Non Asset-based Logistics Providers

Advancements in technology and the associated increases in supply chain visibility and inter-company communications have given rise to a relatively new model for third-party logistics operations – the “non-asset based logistics provider.” Non-asset based providers perform functions such as consultation on packaging and transportation, freight quoting, financial settlement, auditing, tracking, customer service and issue resolution. However, they don’t employ any truck drivers or warehouse personnel, and they don’t own any physical freight distribution assets of their own – no trucks, no storage trailers, no pallets, and no warehousing. A non-assets based provider consists of a team of domain experts with accumulated freight industry expertise and information technology assets. They fill a role similar to freight agents or brokers, but maintain a significantly greater degree of “hands on” involvement in the transportation of products.

To be useful, this type of provider must show its customers a benefit in financial and operational terms by leveraging exceptional expertise and ability in the areas of operations, negotiations, and customer service in a way that complements its customers' preexisting physical assets.

Examples of non-assets based logistics providers would be PeriShip, a company dedicated to working with US domestic perishable food shippers using FedEx express services, and LMS Logistics, who specialize in truckload (TL) and less-than-truckload (LTL), flat bed, intermodal, refrigerated and heavy haul/over dimensional freight movement.

On-Demand Transportation

On-Demand Transportation is a relatively new term coined by 3PL providers to describe their brokerage, ad-hoc, and "flyer" service offerings.

On-Demand Transportation has become a mandatory capability for today's successful 3PL providers in offering client specific solutions to supply chain needs.

These shipments do not usually move under the "lowest rate wins" scenario and can be very profitable to the 3PL that wins the business. The cost quoted to customers for On-Demand services are based on specific circumstances and availability and can differ greatly from normal "published" rates.

On-Demand Transportation is a niche that continues to grow and evolve within the 3PL industry.

3P Logstics, Freight, Transportation, and Warehousing Providers Link Exchange

Tom Taylor Joins Window Book as the VP of Logistics and Distribution Systems
Window Book is pleased to announce Tom Taylor as the VP of Logistics and Distribution Systems. Tom will be responsible for helping printers and lettershops improve their transportation, drop ship, and freight planning. Some mailers are still not optimizing USPS drop ship entry discounts and do not have Palletization or Freight Planning functionality in their software. For mailers who are shipping their jobs at origin-based USPS postage rates, Tom will be able to help them improve their revenue while reducing labor and operational costs by introducing DAT-MAIL mailing software.

Prophesy Announces Accellos One Pulse Available to DispatchSeries Users
Real-Time Analytics Software Gives Trucking, Freight Brokerage Companies Snapshot View of Business Operations

Website Offers New Features for the Logistics and Supply Chain Industry
Logjobs.com a job and resume board dedicated to the logistics and supply chain industry announces new features and functionality on its websites.

Ahern and Associates Aid 4th Acquisition for Greatwide
Greatwide Logistics Services entrusts Ahern and Associates once again for merger and acquisition services within the trucking and logistics industry.

JDF Distribution Purchases HighJump™ Software
JDF Distribution Solutions, a third-party logistics company with distribution centers in Dallas and Houston, Texas has purchased HighJump Software to support its growing warehousing and distribution operations. This major investment in supply chain execution software supports JDF Distribution's strategy to help consumer goods companies comply with retail distribution requirements. HighJump was selected after a competitive review of more than 20 warehouse management systems.

Features of Trucking Software
Trucking or brokerage software is an essential requirement for every trucking/load carrier company or freight brokerage company. They need to perform several tasks, and an efficient and effective software tool can help them perform their tasks better and in effective manner. There are several IT companies providing trucking software and freight brokerage software to needy companies, but not all of them are relevant and useful for every trucking or freight brokerage companies.

Newest Shipwire Delivery: Extended Features for Its Growing Developer Partner Program -- Enhanced Program Presents Revenue Opportunity for E-commer
Supply chain logistics and transportation is a fragmented multi-billion dollar industry that has not traditionally catered to small and medium sized e-tailers. One piece of the puzzle, order fulfillment, is particularly time consuming and complex for businesses to manage independently. Recognizing this opportunity, Shipwire, a leading e-commerce order fulfillment service and transportation logistics company, provides the e-commerce community with tools to offer shipping and fulfillment as a value-added service via the Shipwire Shipping Affiliate Partner Program.

Former SC Johnson European Logistics Director Joins SCALA Logistics Consulting
John Potter, former European Logistics Director and Global Sales and Operations Planning Project Director of SC Johnson Europe, has joined SCALA Consulting and further strengthens their strategic supply chain management capability

RLM Launches FashionManager? Concept-to-Consumer Software Solution
RLM Software is launching FashionManager?, a modular, end-to-end software solution designed to manage the entire fashion industry concept-to-consumer product lifecycle. This comprehensive solution builds on RLM's 25 years of industry-specific solutions by adding new and improved product lifecycle management (PLM), sourcing and supply chain management (SCM), logistics/warehousing/distribution, e-commerce, and more. FM is offered as either an on-premise perpetual licensing platform, or as a web-based monthly software-as-a-service (SaaS).

Pilot Freight Services Named as SmartWay Transport Logistics Partner
Pilot Freight Services, a worldwide provider of transportation and logistics services, today announced it has been named a SmartWay(SM) Transport Partner. The SmartWay Transport program is an innovative collaboration between the U.S. Environmental Protection Agency (EPA) and the freight industry designed to increase energy efficiency while significantly reducing greenhouse gases and air pollution.

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