An understanding of external logistics service providers and their advantages

While the term Third-Party Logistics Service or 3PL is not new, it is still unclear to many. Today more and more companies are considering logistics service providers. These companies ensure that companies outsource and offer their services and knowledge for advanced logistics and management. If you are looking for the best details about fulfillment center for ecommerce businesses then you are at the right place.

An understanding of external logistics service providers and their advantages

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They offer a wide range of services related to supply chain logistics. This includes transportation, storage, picking and packing, order fulfillment, inventory estimating, packing, and shipping.

3PL supplier type

Not all of these providers are created equal. They can be broadly divided into the following main types:

Asset-Based Companies – They offer a wide range of logistics services that almost nothing is excluded. The main advantages of this type of company are shorter cycle times, lower transportation costs, and the visibility of pipeline supplies.

Non-asset based companies – they don't have their fleets or storage space but provide external logistics solutions and intermediary services. They often work with large networks of asset-based freighters.

Storage / Distribution Company – You deal with storage and distribution services. Your responsibilities include work and supervision, incoming goods, storage, and ultimately shipping. They help reduce capital investment and lower the ratio between fixed and variable costs.

Financial-based companies – their services include payment and shipping auditing as well as accounting and cost control.

They also offer a variety of tools for monitoring, ordering, tracking, tracking, and managing inventory. Some of its functions include inventory finance, sales finance, payment decisions, and leasing. The main benefits are reduced costs and better capital investment and cash flow.