Third party logistics providers are specialist logistics companies. They facilitate the outsourcing of supply chain activities to allow an organisation to focus on core business activities. 3PL is particularly important for small and medium enterprises that don’t possess the required resources and infrastructure to manage complex supply-chains. Importantly, a 3PL is likely to operate the most up to date logistics technology, from which organisations can benefit without the need for major capital investment. The typical activities carried out by 3PL providers include:
- Inbound transportation
- Distribution
- Warehousing
- Inventory management
- Packaging
- Reverse logistics