| Third-party logistics | | | | of 3PL provider is typically quite small. |
| | | | |
| A third-party logistics provider (abbreviated | | | | • The customer developer: this is the |
| 3PL) is a firm that provides outsourced or | | | | highest level that a 3PL provider can attain |
| "third party" logistics services to companies | | | | with respect to its processes and activities. |
| for part or sometimes all of their supply | | | | This occurs when the 3PL provider integrates |
| chain management function. Third party | | | | itself with the customer and takes over their |
| logistics providers typically specialize in | | | | entire logistics function. These providers |
| integrated warehousing and transportation | | | | will have few customers, but will perform |
| services that can be scaled and customized to | | | | extensive and detailed tasks for them. by |
| customer's needs based on market conditions | | | | greg |
| and the demands and delivery service | | | | |
| requirements for their products and | | | | Non Asset-based Logistics Providers |
| materials. | | | | |
| | | | This 3PL performs duties such as quoting, |
| • | | | | booking, routing, and auditing, but doesn't |
| | | | need to own warehousing facilities, vehicles, |
| Types of 3PL providers | | | | aircraft, or any other transportation assets. |
| | | | This type of 3PL may possess only desks, |
| Hertz, and Alfredsson (2003) describe four | | | | computers, and freight industry expertise. |
| categories of 3PL providers: [1] | | | | |
| | | | To be useful, this type of provider must show |
| • Standard 3PL provider: this is the | | | | its customers a benefit in financial and |
| most basic form of a 3PL provider. They would | | | | operational terms by leveraging exceptional |
| perform activities such as, pick and pack, | | | | expertise and ability in the areas of |
| warehousing, and distribution (business) - | | | | operations, negotiations, and customer |
| the most basic functions of logistics. For a | | | | service in a way that complements its |
| majority of these firms, the 3PL function is | | | | customers' preexisting physical assets. |
| not their main activity. | | | | |
| | | | Fourth-party logistics |
| • Service developer: this type of 3PL | | | | |
| provider will offer their customers advanced | | | | Fourth-party logistics (4PL), |
| value-added services such as: tracking and | | | | Lead-Logistics-Provider or 4th Party |
| tracing, cross-docking, specific packaging, | | | | Logistics, is a term coined by global |
| or providing a unique security system. A | | | | consulting firm Accenture: |
| solid IT foundation and a focus on economies | | | | |
| of scale and scope will enable this type of | | | | " A 4PL is an integrator that assembles the |
| 3PL provider to perform these types of tasks. | | | | resources, capabilities, and technology of |
| | | | its own organization and other organizations |
| • The customer adapter: this type of | | | | to design, build and run comprehensive supply |
| 3PL provider comes in at the request of the | | | | chain solutions.logistics services to |
| customer and essentially takes over complete | | | | companies for part or sometimes all of their |
| control of the company's logistics | | | | supply chain management function. A 4PL uses |
| activities. The 3PL provider improves the | | | | a 3PL to supply service to customers, owning |
| logistics dramatically, but do not develop a | | | | only computer systems and intellectual |
| new service. The customer base for this type | | | | capital. |