Logistics is a non-core, but integral area of activity for any manufacturing and trading company. It takes a lot of money, effort, time, requires the creation of a separate unit of specialised specialists, the purchase or lease of production facilities, the availability of a fleet of trucks, etc. A 3PL operator – a professional logistics company – allows you to remove all these issues from your agenda and focus on achieving your direct business goals.
What is a 3PL?
The term PL stands for Party logistics and is translated from English as “part of logistics”. The number 3 determines the level of involvement of the logistics operator in the process. Thus, 3PL logistics involves the provision of a full range of services from receiving goods in its warehouses to sending them to a retail outlet or end user.
Classification of PL logistics providers
Depending on the level of service provided, they are distinguished:
- 1PL. Implementation of all aspects related to logistics by the manufacturer.
- 2PL. Transferring only certain operations to the contractor’s responsibility. For example, it can carry out custodial storage in the complex or only packaging and labelling of goods.
- 3PL. Full-service 3PL logistics services, which logistics providers most often implement without involving third-party contractors. This is the highest level of service available.
- 4PL. It provides for the maximum integration of the operator into the company’s activities, when he becomes a partner and can participate in internal affairs from procurement to accounting;
What services do 3PL operators provide
The extensive list of processes provided by the provider forms a complete logistics cycle. It includes:
- Documentation of cargo transportation: insurance of goods, representation in customs authorities, forwarding;
- support of cargoes during their transportation from the manufacturer to the warehouse and from the warehouse to retail outlets or the end consumer. Most often, such services of a 3PL operator involve transportation by its own transport;
- Fulfilment services, i.e. providing a full cycle of warehouse services: receiving goods, accounting for them using specialised software, labelling, rebranding and copacking if necessary, cross-docking, order picking and dispatch, and handling returns;
- issuing invoices, controlling the timeliness of payments;
- information and consulting support for clients.
Advantages of 3PL
- Freeing up time for the implementation of the most important aspects: key goals and the company’s long-term strategy.
- Cooperation with only one contractor, which simplifies control, payments, etc.
- Significant reduction in logistics costs. The manufacturer or seller no longer needs to rent and equip a 3PL warehouse, take care of vehicle maintenance, or pay salaries to an entire team of employees.
- Optimisation of logistics processes so that they take less time.
- Material liability on the part of the logistics company for damage, loss of goods, and late performance of obligations.
- The possibility of obtaining a high level of service, provided that the contractor is a true professional who has all the necessary skills to fulfil his obligations under the contract.
Conclusion.
Given the complexity of technical and human resources equipment, a 3PL provider should be chosen by the customer with the utmost care and responsibility in order not to entrust such an important aspect of its business to an incompetent performer. FashionLogistics is a professional logistics company that meets all the above criteria and carries out fulfilment in Kyiv and Lviv, where it has large warehouses equipped in accordance with the latest trends.
Cooperation with FashionLogistics is an opportunity for any organisation working in the fashion industry to get 3PL storage, transportation and delivery of clothing and footwear orders at reasonable rates with the most responsible approach.
