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You read about it all the time. It seems to have become the buzz word of 2001,
as dot com was for 1999. But what does Third Party Logistics (3PL) really mean
to your business, and do you need it? Simply stated, 3PL is outsourcing problems
you don’t have the resources to manage efficiently. Questions like; “where should
I put this product, I’m out of room in the hallway.” If your inventory has outgrown
your available space, the answer could be an outside warehouse to handle your
overflow inventory.
 A Third Party Logistics (3PL) provider should be equipped to
manage any, and all elements of a manufacturer’s supply chain, whether that’s
warehousing, or arranging transportation. A 3PL needs the knowledge to control the
supply chain, as well as the assets (trucks, warehouse, software) to back it up.
All of these elements encompass what a 3PL is, and should allow a customer to
outsource logistic headaches, and concentrate their resources on core competencies.
But do you need to outsource? There are a few questions which need to be dealt
with before handing over your product. What problems are you trying to solve? Is
outsourcing consistent with your corporate plan? Will outsourcing enable you to
better concentrate on core competencies? Will outsourcing allow better use of
available resources? Do you need asset based, or non-asset based providers? If
you need help with the answers, please give us a call.
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