1. What are 3PL providers in logistics?
3PL providers in logistics refer to external suppliers who provide all or part of the logistics services for the company. The logistics services provided by 3PL providers in logistics generally include transportation, warehousing management, and distribution. In this process, 3PL providers in logistics is neither a producer nor a seller, but a third party that provides services during the entire logistics process from production to sales. They generally do not own goods, but only provide customers with logistics services such as warehousing and distribution.
2. The difference between line logistics companies and 3PL providers in logistics
The service extension and development of the logistics industry is very rapid. When there are more types of services, overlapping services will inevitably appear, such as line logistics companies and freight companies. So what is the difference between line logistics and 3PL providers in logistics?
Line logistics means point-to-point linear transportation, such as one place to another. Such a dedicated line logistics company only transports items from the starting point to the end point, and does not take other routes in the middle to reach the destination in a straight line. After the cargo is full, we set off and implement point-to-point transportation. The direct transportation mode of dedicated line consumes less time on the road, and the transportation is relatively fast. Moreover, because it is direct, the transportation cost is relatively low, so the price is not high. But the disadvantage is that the vehicle will only start when it is fully loaded, so it is not suitable for transporting urgent items.
The difference is that 3PL providers in logistics is more like the upstream link of a company's supply chain, and it is a service method for logistics companies and companies to complete product transportation in a contractual manner. In this type of service, the manufacturer can check the itinerary at any time after signing the contract. 3PL providers in logistics will adjust its driving routes and service content according to the needs of customers, which is more like a butler service, which adjusts the transportation service plan in real time according to the actual needs of different customers.