Third party logistics (3PL) companies are a becoming an important part of today’s supply chain. These companies offer services that can allow businesses to outsource part of all of their supply chain management function. This is a opportunity to have logistics experts look at your specific outsourcing challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. It is a firm that provides multiple logistics services for use by customers. Preferably, these services are integrated, or "bundled" together, by the provider. Among the services 3PLs provide Transloading, warehousing, trucking, fulfillment, drayage, bulk transloading, cross dock, shipping, order fulfillment and freight forwarding."Blackhawk Logistics provides a one-stop value added logistics solution. Deciding to a use a third party logistics company is a decision that depends on a variety of factors that differ from business to business. The decision to outsource certain business functions will depend on the company’s plans; future objectives, product lines, expansion, acquisitions, etc.
Once a decision has been made to outsource certain processes then a company will begin a search for the right 3PL that fits all their requirements at the best possible price. There are three types of Third Party Logistics Company that operate today.
- Asset Based
- Management Based
- Integrated Providers
Asset based third party logistics companies use their own trucks, warehouses and personnel to operate their business. Management based companies provide the technological and managerial functions to operate the logistics functions of their clients, but do so using the assets of other companies and do not necessarily own any assets. The third category, Integrated Providers, can either be asset based or management based companies that supplement their services with whatever services are needed by their clients.
When selecting a 3PL, the request for information (RFI) or quotation (RFQ) should be as detailed as possible. The company that is selected should be able to fulfill all the logistics requirements and that can only be assured if every requirement is communicated to potential companies. The RFI should include a detailed description of the areas to be outsourced. This will usually include.
- The scope of the contract, including locations, facilities, departments.
- Information on volumes involved; number of deliveries, warehouse sizes, number of items, etc.
- The logistics tasks are to be performed, e.g. warehousing, transportation, etc.
- The level of performance required.
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