What is the role played by a 3PL service provider?

Have you ever wondered about the role played by the 3PL service provider? A 3PL provider can fulfill various responsibilities on behalf of industrial or commercial consumers, from warehousing, supply chain management, logistics operation to transportation. A 3PL provider is an organization that offers several services to its customers like storage, fulfillment services, distribution, and transport. Often, customers or eCommerce retailers can outsource such operations to e-commerce fulfillment services. These service providers are a necessary part of a business's supply chain management. The range of services provided by a 3PL logistics provider has to be explained in the form of agreements, service level agreements, or contracts after proper documentation. These important documents will include detailed information related to the duration, scope, and cost of services offered by the 3PL provider.

What are the services offered by a 3pl logistics company?

The logistics services are of different types, so numerous 3PL businesses operate in distinct parts of supply chains. Generally, most of these logistics services can be categorized as follows:

• Procurement of goods: Receiving and placing goods from suppliers to meet the supply chain's requirements.
• Fulfillment of orders: These centers have to accept orders from clients or customers while picking, arranging, and packing the goods that must be sent out and completed on time.
• Storage: These centers offer temporary and secured storage services for goods within similar locations and warehouses.
• Transportation: These service providers have to arrange for processes like transportation, consolidation, management, and deconsolidation of goods. 

Besides, third party logistics providers can offer supplementary assistance related to IT systems integration, data exchange, inventory management, reverse logistics, reporting, and similar offerings. A fulfillment center can manage inventories while identifying stock levels in shortages and increasing orders with manufacturers and suppliers. You can contact a fulfillment service provider to learn about multi-channel fulfillment and related operations.