Third party logistics services exist to help a business expand. That seems simple enough, but once you get further into the process you realize that there is more than just one type of logistics provider. Indeed, there are four main models that you can choose from, depending on what your business needs to expand.
Your standard 3PL company will do basic activities to save you time. That would include picking up and dropping off items your business needs, handling of shipping to customers, and of course storing inventory and cataloging to the best of their ability. This is the least expensive of the four types of logistics operations, but also the least complex.
Next up we have the service developer- which will essentially do everything that the standard third party logistics company does, yet it offers services that other providers don’t. This could include more options in packaging, better security options, or really any service that has been developed to cast a shadow on their competition. While more expensive, they also have better features your business can use.
If you don’t have the man power to do any logistics work, the customer adapter is the best 3PL model. In this model of logistics, the company will adapt to your every need and do all logistics activities for you. Because of the nature of this model, there are typically few customers that these companies take on. Do note that at this point the 3PL company will not work in-house with your own.
The four models explained aren’t hard to look at and determine where your business would fit. A large business with plenty of room for expansion is best suited for the customer developer model, while other businesses can easily be satisfied with a standard model or something similar. The best course of action at this point is to come into contact with several 3PL services to see when you can speak to them about a free consultation service.
At the extreme end of the spectrum we have the customer developer model. This model allows a 3PL business to completely integrate with your own business. It will be much like you have just hired a whole new set of employees that work directly with you to develop your business. This model of 3PL services is extremely limited in the number of clients it can sign on- so these are the most rare of all.
Final Thoughts
Third party logistics services can greatly increase your efficiency as a business- just be sure you know which model you need specifically. A 3PL company should be able to provide free consultation to see what they can do for you, and at a price to meet your budget.
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