What Do You Understand By Third-Party Logistics (3PL)?

Third-party logistics, also called 3PL, is the latest business model where organisations outsource the logistics service to the best third-party logistics providers for fulfilling their delivery requirements, distribution, inventory management and other supply chain logistics.

Due to the demand for third-party logistics, many businesses are taking the help of Freight Forwarding Services in Kolkata that are reliable and affordable. As a business owner, you can rely on these service providers for product distribution, supply chain, and inventory management.

In this blog, you will learn more about this business and how it benefits small, medium, and large-scale businesses.

How Does Third-Party Logistics Work?

The third-party logistics or the 3PL freight providers organise the inbound and outbound transportation and warehouse for the clients who rely on them for logistics services. Most of these 3PL companies either own or lease a space that acts as the warehouse space and offers clients contracts with freight and shipping carriers.

The “3rd party” means outsourcing the total cycle of the whole fulfilment of logistics. The client does not have or maintain any warehouse for inventory management. Rather, they hire a 3PL company that offers shelf space for all the products in the huge warehouse where they are stored for different clients. The warehouse employees take the products and put them in the inventory. Then, they select all the products to fill orders and pack them for shipping. In collaboration, the 3PL freight companies also work with different carriers to deliver orders to the client.

Their warehouses are developed for increasing efficiency and speed so that they can handle huge volumes as the client grows, and it wants to expand its overall capacity.

Activities Done By 3rd Party Logistics

The 3PL providers offer various functions, and they include-

Shipping and Transportation

These companies focus on technology, often using integrated freight management services or the transportation management system. These technologies help in increasing efficiency and automate tedious tasks.

Warehousing

These companies support warehouse procedures and also specialise in the storage of goods. Several 3PL providers offer customised ways of handling inventory.

Distribution

Many 3PL companies offer distribution and wholesale services like outbound order fulfilment, picking and packing, custom labelling and manufacturing.

Custom Clearance

Choosing reliable Freight Forwarding Services in Kolkata can take time for most companies. However, working with Team Logistics will help streamline the business and help in better management of inventories.

Choose the best Freight Forwarding Services now and reduce stress on deliveries.