What is the role of third-party logistics companies in the USA?

Have you ever wondered what the importance of third-party logistics providers is? If yes, you can find your answers here. Third party logistics companies in the usa provide various services, especially e-commerce retailers. These providers can accomplish tasks like warehousing, supply chain management, logistics operations, to transportation. A 3PL logistic provider works as an expert company to offer an array of services ranging from storage, fulfillment, distribution to transportation on behalf of the ecommerce retailers. 

 

How can you know about the services provided by a third party logistics provider?

The services provided by these experts are explained and documented in agreements, contracts, along with service level agreements. Next, such documents can consist of details related to the duration, scope, cost, and crucial aspects that are a part of the 3PL provider’s services. 

What are the primary services provided by third-party logistics providers to the consumers?

There are different kinds of logistics providers out there, and they can vary according to their services. Most of the 3PL business providers are specialized in the operation of distinct parts involved in the supply chain. Usually, several logistics provider’s services come under the following categories:

 

1. Procurement Services:
These service providers can receive and order goods from other parts of the supply chain.

2. Order fulfillment services:
These service providers receive orders from different consumers, pack and pack goods, and prepare the goods for further shipping. 

3. Storage services:
Service providers temporarily offer storage services for goods with warehouses or similar locations.

4. Transportation services:
The 3PL providers can make necessary arrangements for deconsolidation, consolidation, transportation, and goods management. 

 

Besides, 3PL logistics service providers offer an array of services related to integrating IT systems, data exchange, reverse logistics, inventory management, reporting, and so on. Once an order request is received, the processes like picking the goods, packing them, and shipping the goods to the consumer’s doorstep are carried out by a 3PL service provider in the USA.