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Third Party Logistics Providers (3PL) : Kyle Sera Amy Irvine Scott Andrew Carrie Schmidt Ryan Lancaster

This document defines and describes third party logistics providers (3PLs) and 4PLs. It outlines different types of 3PLs including transportation-based, warehouse/distribution-based, forwarder-based, and financial/information-based 3PLs. Benefits of using 3PLs include saving time and money by not having to invest in assets like trucks, allowing companies to focus on their core competencies. The document also discusses levels of outsourcing to 3PLs from transactional to strategic and defines what differentiates a 3PL from a 4PL provider.

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Harsh Sanklesha
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63 views16 pages

Third Party Logistics Providers (3PL) : Kyle Sera Amy Irvine Scott Andrew Carrie Schmidt Ryan Lancaster

This document defines and describes third party logistics providers (3PLs) and 4PLs. It outlines different types of 3PLs including transportation-based, warehouse/distribution-based, forwarder-based, and financial/information-based 3PLs. Benefits of using 3PLs include saving time and money by not having to invest in assets like trucks, allowing companies to focus on their core competencies. The document also discusses levels of outsourcing to 3PLs from transactional to strategic and defines what differentiates a 3PL from a 4PL provider.

Uploaded by

Harsh Sanklesha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Third Party Logistics Providers (3PL)

Kyle Sera Amy Irvine Scott Andrew Carrie Schmidt Ryan Lancaster

Overview

What are 3PLs Why use them Tips for implementation of 3PLs 4PLs

Types of 3PL Providers

Transportation Based
Services extend beyond transportation to offer a comprehensive set of logistics offerings. Leveraged 3PLs use assets of other firms. Non-leveraged 3PLs use assets belonging solely to the parent firm. Examples: Ryder, Schneider Logistics, FedEx Logistics, UPS Logistics

Types of 3PL Providers

Warehouse/Distribution Based
Many have former warehouse and/or distribution experience. Examples: DSC Logistics, USCO, Exel, Caterpillar Logistics, IBM

Types of 3PL Providers

Forwarder Based
Very independent middlemen with forwarder roles. Non-asset owners that provide a wide range of logistics services. Examples: AEI, Kuehne & Nagle, Fritz, Circle, C. H. Robinson, Hub Group

Types of 3PL Providers

Financial Based
Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory. Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston

Types of 3PL Providers

Information Based
Significant growth and development in this category of Internet-based, business-tobusiness, electronic markets for transportation and logistics services. Examples: Transplace, Nistevo

Logistics?

Logistics: Managing the flow of information and goods inbound from suppliers and outbound to customers. Why be good at this? Core competency?

Why Use 3PLs?

Save time

Dont need to invest in:


Trucks Training Development

Help expand

New markets International

No roads

Why Use Cont.

Narrow your focus


Allows you to focus on your strengths Dont get spread too thin Can ensure delivery times can help a company run leaner

Reach more customers more effectively


Management Focus

Furthering your company Consider potential benefits and drawbacks 3pls can increase profitability Can you be a 3PL to someone else?

Levels of Outsourcing

Transactional Outsourcing: Based on transactions, with no long term contracts and no bonding between the 3PL and the outsourcing company. Tactical Outsourcing: Outsourcing on a long term basis with negotiated contacts and integrated IT systems to facilitate free information flow and create supply chain visibility.

Strategic Outsourcing: Based on long-term relationships with successful outcomes, 3PL companies become partners in supply chain management and establish transactional transparency.

3PL Defined

Can be ambiguous as there are many definitions

Some say all or a significant part Some say at least one part Businesses that provide one or many of the following logistics services: Transportation Management Public/Contract Warehousing Distribution Management Freight Consolidation

Best definition is probably a combination:

4PL Providers

Manage and direct the activities of multiple 3PLs, serving as an integrator Refinement on the idea of 3PLs 4PLs are not asset based like 3PLs Assembles and manages the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions

Transways Express 4PL


One stop transport and logistics supplier Work with suppliers and customers

Sources

3PL definition: http://accuracybook.com/glossary.htm Top 10 3PL providers: http://www.inboundlogistics.com/3pl/awards.shtml Successful 3PL implementation: http://logistics.about.com/od/thirdparty/a/uc041805a.htm Sangam, VK. (2006). Implementing Third Party Logistics. Retrieved May 5th, 2006. From Massey University, About Business and Finance website: http://logistics.about.com/od/thirdparty/a/uc041805a.htm Red Prairie: http://www.redprairie.com/Industry%20Solutions/Third%20Party%20Lo gistics.aspx Class lecture slides: http://logistics.about.com/od/thirdparty/a/uc041805.htm

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