Third-party logistics (3PL) is a term used in the logistics and supply-chain management for outsourcing the distribution and fulfillment services of a business. It bundles together various third-party logistics services such as public or contract warehousing, management of the distribution, and consolidation of freight. Bringg is an example of a 3pl delivery company.
Classification and characteristics of various 3PL services:
1.Based on transportation:
-In order to provide a full set of logistics offerings, the services are stretched beyond transportation.
-The assets of other firms are used in the leveraged 3PLs.
-Only the assets of the parent firm are used in case of non-leveraged 3PLs.
2.Based on warehouse or distribution:
These have previous experience regarding the warehouse and distribution.
-These consist of independent middleman having roles of a forwarder.
-Being the owners of non-assets, they offer a broad range of logistic services.
4.Based on shipper or management:
-They are concerned with the process of shipping from the starting till the end.
-Technological advancements such as transportation management system and integrated freight management services are provided for avoiding heavy process and complicated features like claiming and accounting.
-It allows carrier relations management for the maintenance and negotiation of the current rate.
-Provides information regarding freight data and reports of the matrix in order to ensure better visibility and control on the logistics outcomes in the future.
5.Based on finance:
It includes auditing and payment, control and cost accounting, and provides tools needed for booking, tracking, monitoring, inventory management and tracing.
6.Based on information:
In this case, the transportation and logistics services in the electronic market are internet-based business-to-business activities.
Outsourcing levels in 3PL:
1.Transactional Outsourcing: This is transaction based. There is no long-term contract and bond between the 3PL and the outsourcing company.
2.Tactical Outsourcing: It is based on integrated IT systems for the free flow of information and creation of supply chain visibility. It is on a long-term basis and negotiated with contracts.
3.Strategic Outsourcing: In this case, a transactional transparency exists after the partnership between the 3PL companies in supply chain management. It is also on a long-term basis.
Customers experience best package delivery services through the last mile of order through Amazon logistics services. Amazon has made this possible through its partnership with various Delivery Service Providers and an independent community of contractors.
It implements initiatives for improvement and devices innovative delivery solutions to enhance the customer experience. New technology-based solutions and customer based innovative measures such as Amazon Fresh, Prime Now and Amazon Restaurants, developed on a global scale, through the involvement of corporate and field teams, cater the customer demands in an efficient way.
Amazon has managed to reach the top through its amazing transportation and logistics teammates that are involved in process development and operating with freight and transport companies extensively to ensure the right shipment to the right places on time.