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:

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

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?

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