Third Party Logistic

What is Third Party Logistics

Third-party logistics - (abbreviated 3PL) describes businesses that provide one or many of a variety of logistics-related services.  Types of services would include public warehousing, contract warehousing, transportation management, distribution management, and freight consolidation. A 3PL provider may take over all receiving, storage, value added, shipping, and transportation responsibilities for a client and conduct them in the 3PL's warehouse using the 3PL's equipment and employees, or may manage one or all of these functions in the client's facility using the client's equipment, or any combination of the above.

Third party logistics 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.
Hertz and Alfredsson (2003) describe four categories of 3PL providers:

·         Standard 3PL provider: this is the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, and distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not their main activity.

·         Service developer: this type of 3PL provider will offer their customers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of scale and scope will enable this type of 3PL provider to perform these types of tasks.

·         The customer adapter: this type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company's logistics activities. The 3PL provider improves the logistics dramatically, but do not develop a new service. The customer base for this type of 3PL provider is typically quite small.

·         The customer developer: this is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL provider integrates itself with the customer and takes over their entire logistics function. These providers will have few customers, but will perform extensive and detailed tasks for them. 

Div-Ent

Div-ent Chicago refrigerated warehouse network encompasses clientele -centric production warehouses and market/retail-centric distribution and transportation resources and facilities. Our production warehouses are planed and contrived keeping in mind grower blast freezing and storage related support and assistance in this robust, rugged and vigorous agricultural area; our distribution network, nevertheless, is a high-throughput platform to important marketplaces everywhere in the United States. Chicago ambient warehouse facilities provide millions of cubic feet of frozen/frosted, and refrigerated and general produce and commodities warehousing. Our location in the heart of Chicago sprawl renders better shipment times, while a number of our distribution facilities share an adjacency that presents our clients with the advantages of surge over space to encounter unplanned and unexpected storage requirements. Chicago ambient warehouse’s Supply Chain realization and administration blends and amalgamates pivotal factors like warehouse management, ordering, and several other procedures

 for a more unified and systematic or streamlined push forward towards managing intricate and heterogeneous inventory of commodities Chicago refrigerated warehouse puts better and thorough information and data into the hands of the users, and that too faster!. By moving real time details or information to the right or concerned people, Chicago refrigerated warehouse rolls out superior customer value both in consolidation and storage or depository programs.

Diversified Entities (DE) is a third party logistic warehouse facility. Third-party logistics  (abbreviated 3PL) describes businesses that provide one or many of a variety of logistics-related services.  Types of services would include public warehousing, contract warehousing, transportation management, distribution management, and freight consolidation.   DE manages and implements a range of logistics functions, using its own assets and resources on behalf of other companies. It is becoming an ever increasing trend to outsource warehousing and distribution operations, to take advantage of lower total costs, better quality and efficiency offered by specialized 3PL providers.

By eliminating the put-away process, companies reduce 3PL warehouse requirements and inventory levels. They also consolidate freight to reduce transportation costs and improve product availability. Given that demand is increasingly volatile, it comes as no surprise that cross-docking continues to gain favor. Indeed, companies increasingly implement cross-docking as a means to reduce costs, manage inventory levels, increase efficiencies and accommodate unpredictable customer demand, Cross-docking has increased significantly in the past three years. The survey completed by The Cross-Docking Trends Reports shows an increase of 16.5% in three years. 68.5% of the companies surveyed are currently cross-docking. Cross-docking is a viable strategy for adapting to current economic times. The biggest benefits of cross-docking are reducing transportation costs, consolidating shipments, and overall improvement in service. More and more companies are recognizing the value and are looking to outsource the cross-docking service. There are considerable savings for those doing the cross-docking. Since products aren’t actually put-away, companies reduce on 3PL warehouse labor. Furthermore, by consolidating LTL shipments into full loads, companies are able to improve transportation efficiency and reduce their fuel costs. For more details www.div-ent.com  .