Third party logistics describes businesses that provide one or many of a variety of logistics related services
3rd party Providers
1. Freight Forwarder or Non Vessel Operating Common Carrier (NVOCC). It s a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a
market, customer or final point of distribution.
2. Courier companies the one who delivers messages, packages and mail and is known for their speed, security, tracking service and specialization.
3. Other companies integrating and offering subcontracted logistics transportation services.
Four Categories of 3PL Providers
- Standard 3 PL Provider this is the most basic form of a 3 PL provider They would perform
activities such as, pick and pack, warehousing, and distribution (the most basic
functions of logistics.
- Service Developer this type of 3 PL provider will offer their customers advanced value added
services such as tracking and tracing, cross docking, specific packaging, or providing a
unique security system
- The Customer Adapter this type of 3 PL provider comes in at the request of the customer
and essentially takes over complete control of the company’s logistics activities The 3 PL
provider improves the logistics dramatically, but does not develop a new service
- The Customer Developer this is the highest level that a 3 PL provider can attain with respect
to its processes and activities This occurs when the 3 PL provider integrates itself with the
customer and takes over their entire logistics function These providers will have few
customers, but will perform extensive and detailed tasks for them