What is a Third Party Logistics Company?
In a world where online shopping has taken over browsing the racks at shopping malls, retailers have had to adapt and formulate complex supply chain strategies to support “the e-commerce effect.” While these supply chain issues became a catchphrase in 2020, dedicated third-party logistics companies have tackled these complex scenarios for decades. With that being said, what is a third-party logistics company?
What is a 3PL?
In the simplest of terms, a third-party logistics company (3PL) is a service that a logistics company provides to handle all or a portion of an organization’s supply chain process. That process can include procurement/sourcing, ocean shipping, air shipping, transportation, warehousing and fulfillment, and other value-added services.
Benefits of a 3PL
There are a few key reasons why organizations turn to 3PLs to be the solution to get products from point A to point B.
Handled by experts
Logistics companies are the subject matter experts when moving goods, plain and simple.
Cost Savings
Secondly, they can offer a cost friendly pricing model to handle all or a part of the supply chain process. For example, some 3PLs may take a retailer’s transportation and warehousing/fulfillment services making it a seamless experience for the retailer to get the products from the port and to their storefronts or even a customer’s home. It allows organizations to save money by investing in owning and operating their logistics processes, such as warehouse automation, insurance, labor costs, etc.
Supply Chain Software
Thirdly, 3PLs can share data in real time with their customers using supply chain software such as Warehouse Management Systems (WMS), Transportation Management Systems (TMS), etc.
Connecting and hiring 3PL Talent?
Although national unemployment may be low, the need for qualified executives within the 3PL space is at an all time high. Due to these unprecedented talent shortages, organizations can turn to executive search firms like The Everest Executive Search Group to eliminate the stress of searching for the industry’s best executives.
If you are a 3PL in need of recruitment support, The Everest Group has been recruiting within the logistics industry for 30 years, placing mid-senior level executives within all functional areas within the supply chain, including Warehouse/Transportation Operations, Human Resources, Industrial Engineering, Business Development, and Information Technology. To learn more about their best practices approach, call them anytime at (626) 963-4503 or visit them online at https://theeverestgrp.com/.
