What is 3PL logistics and why should your brand consider it?

Many companies include 3PL logistics in their item storage and distribution system. Its boom is due to the increase in online businesses focusing their efforts on electronic services.

If your digital company grows exponentially, you will know that the challenges associated with time and resources also grow. It is the ideal time to implement 3PL and 4PL solutions.

Now, if you do not know about these solutions, this article is for you. Here we tell you what it is, its advantages and possible drawbacks. Continue reading!

What is 3PL Logistics?

3PL logistics is known as outsourced or third-party logistics. It is an outsourced service that simplifies business tasks and increases the productive capacity of companies.

In other words, it is an outsourced service that a company seeks to organize, manage and execute processes of transfers, storage, and delivery of items.

The most contracted service is the transport of goods. However, other companies prefer storage, worker management, or product preparation. Whatever the service, the 3PL operator guarantees logistics optimization, allowing concentration on other tasks.

3PL advantages and disadvantages of outsourcing logistics

The 3PL service provider acts as a mediator between the company and its consumers. Its primary function is to manage the products, making them reach the final recipient (client) on behalf of the selling company. Although it has many benefits, it also has certain drawbacks:

Benefits

● Now time and money.

● Expands the existing space.

● Closeness to customers.

● More competitive shipping prices.

● Brand promotion.

● More agile and efficient time management.

Drawbacks

● The control and monitoring reduce and depends on the 3PL operator. You must select a trusted operator to mitigate the impact of these inconveniences. It is advisable to analyze the company’s needs and notify the 3PL provider. Only then can you ensure that there are more benefits than problems.

Examples of logistics solutions 

The tasks performed by a logistics provider may vary according to the need and classification. Logistics solutions are classified, so we will describe the categories and what each entails.

1PLIt occurs when a company does not hire any logistics service. It means that companies implement their logistics and still meet the demand.
2PLRefers to limited logistics contracts for some areas. Generally, it is about transporting, since not all companies have vehicles.It is ideal for businesses that are just beginning their expansion and want to gain territory and position in the market.
3PLOperators offer both 1PL and 2PL, but also manage and organize more broadly. The responsibility is greater since operational monitoring must maintain to improve productivity and performance progressively.
4PLIt is a more advanced logistics. 4PL providers take over the logistics entirely. In this case, the operators do not have their own physical space, much less for storage or transfers.Due to these needs, they rely on logistics. It means that they manage the 3PL outsourcing themselves. They offer direct advice, programming, technological applications, monitoring, management, and operations control.
5PLIt is a very recent model and is characterized by the use of technology. In this case, they fully assume the productive management of supplies.
To achieve the goal, they strategically turn to the 3PL and 4PL. For their part, they have support platforms with monitoring systems.

By hiring a logistics provider, companies can obtain significant benefits, multiply their productivity, and the project grow exponentially.

The 3PL in business competitiveness

The world of logistics is of great importance in itself, but it also has a considerable influence on business competition. 3PL logistics allows you to face the following challenges:

  • Maintain an optimal level of service for customers.
  • Bear the costs.
  • Access to detailed information on each process.
  • Reduce investments.
  • Operate according to existing resources.

Outsourced logistics guarantees that the benefits outweigh the drawbacks, which benefits Mexican supply and demand. Therefore, good logistics is essential to improve the competitiveness of companies and the country.

Logistics 3PL or 4PL, how are they different?

The difference between these logistics solutions can see in the resources that each implements for its success. 3PL offers vehicles for the movement of goods and spaces for storage. Thus, 4PL only acts in the scheduling, management, and monitoring of logistics.

In other words, the 3PL offers its resources, while the 4PL operator only provides its experience to optimize. In practice, the 4PL provider outsources the 3PL to carry out processes according to the client’s needs.

The best 3PL logistics operator for your company in Mexico

Professionals in providing services adapted to the contracting party requirements, our suppliers help you optimize processes. Meanwhile, 3PL companies in Mexico can have free time to promote other activities.AMN Quality Solutions has extensive experience in product inspection, distribution, storage, and preparation logistics. So, if you have a logistical need, and are looking for a safe and guaranteed solution, do not hesitate to contact us. We will gladly offer you a quality, efficient and tailored solution.

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