Common 3 PL functions are as follows

Transportation Management

SMS can be effectively integrated with Warehouse Management Software (WMS), so that integrated logistics solution concepts such as multi-stop workloads or loss from truckloads Can be used to fight from individual vendors to common destinations


Warehouse management

3Pls run and manage warehouse using warehouse management system, radio frequency scanning and bar code labeling


3Pls manages and tracks the movement of goods from initial receipt to outbound shipment, real time periodic and accurate information can be provided to manage inventory and better demand


Additional services such as advanced shipment notifications can be generated to notify retail partners in advanced shipments.


Packaging

SPLs often have the capability of packaging the final product in their warehouse, thus eliminating the need to ship the product to offsite packaging companies. This in turn means less product management, shorter cycle times and lower costs.


GPL can offer a variety of packaging services such as custom pullets, display shippers, inserts and coupons, labeling and printing, repackaging conversions, and wrapping and bundling.


Advantages to companies by using 3PL services

Focus on Core Competencies: Outsourcing enables companies to focus on core businesses and strengths. The limited resources of companies can be saved and the company can focus on what it can do best,

Lower Investment

Organizations can outsource and save the large amount required to build facilities such as logistics assets, networks and warehouses. As an alternative to investing in these, companies can outsource these requirements by outsourcing and investing in their core processes.


Enhanced technological capabilities and flexibility

The use of technical capabilities has increased the efficiency of logistics operations. But, it may not always be possible for companies to invest in new systems or upgrade their existing systems. However, deploying third party logistics providers can insure against such technological changes. 3PL often invests in such technologies to provide competitive services.

Best practices

Outsourcing logistics to third party logistics enables companies to implement best practices and also allows organizations to achieve best performance.



3 Essential characteristics of a 3 PL


  • Solutions Orientation
  • Logistics Know-how
  • IT Capability 
  • Management and organizational Skill 
  • Informativeness
  • Independent and best of breed approach


Fourth Party Logistics

Information technology plays an important role in logistics and supply chain management. In fact logistics integration, which is a complex exercise, is completely dependent on IT support. Third party logistics suppliers provide logistics solutions to customers based on their domain knowledge that they have acquired over the years. 4PL Companies provides logistics solutions built around the domain knowledge provided by third party logistics companies. Thus 4PL is derived from the vacuum created by 3PL.


Fourth Party Logistics (4PL) is the integration of all companies involved in the supply chain. 4PL is the planning, operation and control of all logistic processes (eg information, materials and capital) by a service provider with long-term strategic objectives. Fourth-party logistics (4PL) has evolved into a successful supply chain solution comprehensively integrating the competencies of third-party logistics (3PL) providers. Leading edge consulting firm and technology provider.


Let's look at the 4PL process and what is needed for the process to be successful. A 4PL is a supply chain manager and enabler who assembles and manages resources, building capabilities and technology with complimentary service providers. They act as the first point to provide unique and comprehensive supply chain solutions. 4PL management leverages the combined capabilities of consulting and 3PLs. They act as an integrator gathering resources, capabilities and technology to design their own organization and those of other organizations. Creating and running comprehensive supply chain solutions. 4PL is an emerging trend and is a complex model and offers more benefits in terms of economies of scale.