Questions and Answers
1. A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or “third party”) logistics services for part, or all of their supply chain management functions.
2. Third party logistics and warehouse providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers’ needs based on market conditions and the demands and delivery service requirements for their products and materials.
3. Often, these services go beyond logistics and included value-added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain. Then the provider is called third-party supply chain management provider (3PSCM) or supply chain management service provider (SCMSP). Third Party Logistics System is a process which targets a particular Function in the management. It may be like warehousing, transportation, raw material provider, etc.
4. Examples of Providers
3PL providers on the market now include FedEx Supply Chain Services, which provides companies with logistics, fulfillment and transportation services, and DB Schenker, which offers the entire breadth of supply chain services to large companies.
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