What is Third Party Logistics (3PL)?
Third-party logistics (or 3PL) refers to the outsourcing of e-commerce logistics processes to third-party operations, including inventory management, warehousing, and fulfillment. 3PL providers allow e-commerce merchants to do more and use tools and infrastructure to automate retail order fulfillment.
What are the benefits of 3PL services for your business?
-Cost Savings- Your company will definitely have less supply chain functions than a professional logistics company. Thanks to their exclusive relationship in the field of logistics, you can save a lot of driving costs.
-Expert Fulfillment - Supply chain logistics is not that simple and can be a daunting task without the help of experts. Expert shipping, warehousing and fulfillment is something you cannot ignore. That's what 3PL Logistics Services offers you while simplifying the entire process.
- Shorter lead times - 3PL service providers will definitely specialize in shipping services. Their large delivery fleet will expedite the entire delivery process and provide your customers with same-day delivery.
-Reverse Logistics - It's very frustrating when a customer returns your product. However, it is part of the business. Plus, you don't have to bother collecting returns because 3PL convenience includes reverse logistics in the transaction.
What is (4PL) Fourth Party Logistics Service?
4PL or fourth party logistics service is a supplement to the existing 3PL logistics service.
In this operating model, not only 3PL services but also other supply chain facilitation are provided.
Manage the resources, infrastructure, technology and other related aspects of a specific business.
4PL Logistics consists of a partner (company) who is responsible for all outsourced logistics as well as accessing, building, operating and designing supply chain solutions.
What are the benefits of 4PL?
There are many benefits of 4PL logistics services, one of the main advantages is trusted publicity.
4PL providers make long-term commitments to customers. The association is a valuable partnership and is very effective in achieving the common goals of the business.
4PLs are responsive in terms of customer connections, utilizing online interfaces to meet the modern needs of customers.
The main idea of this logistics service is to eliminate inefficiencies and simplify business work.
In short, business expansion is completely possible and feasible with the assistance of professional partners of 4PL Logistics Services.
3PL vs 4PL: What's the Difference?
When researching 3PL, you may come across the term 4PL. 4PLs add an additional level of separation between e-commerce merchants and the 3PLs that ship their products: When businesses contract with 4PLs, 4PLs manage and arrange 3PL services for customers. This is sometimes called "dual agency".
4PL companies typically provide customers with end-to-end supply chain management, including 3PL services, manufacturing, inventory procurement, and more.
