If you’re an eCommerce retailer, you should be aware of third party logistics service providers and the services they offer. This is because you have probably encountered them in one way or the other in the course of operating your business. Now mostly known by the acronym 3PL, what are these companies, what do they do and what are the different types of 3PL providers?
At QRC Logistics, we define third party logistics as a service provider who is responsible for managing the outbound logistics activity of an eCommerce retailer or manufacturer. This includes activities such as warehousing, transportation, inventory management, and order fulfillment services.
What Are Third Party Logistics Providers?
What are 3PLs? Third party logistics providers, or 3PLs, are companies that provide various types of outsourced logistics services for other businesses. These services include transportation, warehousing, inventory management, and fulfillment. 3PL shipping companies help businesses reduce costs and streamline operations, allowing them to operate more efficiently.
Types Of 3PL Providers
Like most sectors connected to eCommerce businesses, the logistics sector has seen significant growth in recent years. As a result, the services provided by 3PL vendors have expanded to include a wide range of solutions. Below are the different types of logistics companies and the services they offer.
Standard 3PL Providers
If your eCommerce business only requires basic services such as warehousing, transportation, and inventory management, a standard 3PL logistics provider may be the right fit. These providers offer simple but efficient services at an affordable cost.
Many newer 3PL logistics providers fall into this category. If your business requires more advanced or customised services, you may need to consider another type of provider.
Service Developer 3PL
In addition to standard services, service developer 3PLs provide value-added offerings such as IT solutions, compliance management, security, and shipment tracking. These services help improve reliability, safety, and visibility across the supply chain, often resulting in cost savings.
Some service developer 3PLs also offer package picking and cross-docking services. Cross-docking allows goods to be transferred directly from inbound to outbound transportation without being stored in a warehouse, reducing storage costs and improving delivery times.
Customer Adapter 3PL
Customer adapter 3PL providers are ideal for eCommerce businesses with complex operations that require customised logistics solutions. These companies manage most or all logistics activities and often design tailored strategies to meet specific business needs.
Their services may include full shipping management, transportation management systems for shipment tracking, returns management, and customer service support. Many 3PL providers use advanced technology to differentiate themselves in this space.
These services are typically more expensive but offer comprehensive logistics support for businesses with demanding operational requirements.
Customer Developer 3PL
Customer developer 3PL companies completely take over the logistics operations of their clients, effectively becoming the business’s logistics department. This option is best suited for companies looking to outsource all logistics functions and eliminate the need for an in-house logistics team.
These providers are often the largest third party logistics companies, with extensive experience and resources to manage complex, large-scale operations. While fewer in number, they offer end-to-end logistics solutions at the highest service level.
What Are The Features of The Different 3PL Logistics Services?
- Warehousing: 3PL companies offer warehousing services such as storage, packaging, labelling, and order fulfillment. Many provide specialised solutions based on product type and shipping requirements.
- Transportation: 3PL firms provide transportation services including road, air, sea, and rail freight. They leverage carrier networks and existing resources to deliver the most efficient shipping solutions.
- Forwarding: Third party logistics providers manage the movement of goods from origin to destination. Services include customs clearance, documentation, shipment tracking, and storage.
- Shipping Management: 3PL companies oversee the full logistics process and may offer additional services such as carrier negotiations and route optimisation.
- Finance: Financial services can include accounting, auditing, credit facilities, and payment processing related to logistics operations.
- Information: Many 3PL providers offer digital and internet-based logistics solutions, improving visibility and communication across the supply chain.
Conclusion
3PL logistics providers simplify the complex and often costly logistics process for eCommerce businesses. Regardless of business size or operational complexity, there is a 3PL solution designed to meet specific needs. Each type of provider offers unique services and capabilities, making it essential to choose the right partner for your business.
Get Started with QRC Logistics
Choosing the right third party logistics partner can have a direct impact on your efficiency, costs, and customer experience. QRC Logistics works with eCommerce retailers and manufacturers to design logistics solutions that align with their operational goals and growth plans.
With decades of experience, scalable 3PL services, and a focus on reliability and transparency, QRC Logistics helps businesses streamline fulfillment, improve inventory management, and optimise transportation. Contact QRC Logistics to learn how our third party logistics solutions can support your business today.
