By now, logistics is a familiar word for those in the transportation business. It has moved from being a buzz word in the 170s and 1980s to being commonplace. While a few companies still handle their own logistics in-house, most do not. They turn it over to 3rd party logistics providers.
Types of Providers
Third party logistics providers are companies that provide a variety of transportation and storage services. They may focus on one or the other. They may also combine the two to provide a full-service package. This involves a thorough integration of diverse aspects of the shipping industry.
Today’s companies work hard to establish themselves as capable of providing optimal transportation solutions for the delivery of goods. However, within the logistics business, shipping companies may be considered as falling into different categories; however arbitrary they may seem.
Some may refer to 3rd party logistics providers as pure or “value-added” providers, while others clearly differentiate between hybrid and true providers. In this classification system, it appears more companies are hybrid except for those who are in the business of solely working with shipping and trucking companies to provide logistics. True third party logistics providers work with their clients to provide them with a totally outsourced and completely integrated transportation solution.
Hybrid companies may include the following:
- Trucking companies who have incorporated warehouse facilities into their offerings
- Warehouse facilities now including trucking capabilities
- Logistics software companies that market their products and related systems to their customers
3rd Party Logistics Providers
Transportation and shippers are co-dependent entities. With manufacturers and shippers finding the operating of an in-house transportation department too costly and inefficient, another business has stepped in to fill the gap. Today, 3rd party logistics providers work with efficiency to make sure everything proceeds effectively from the cargo’s source to its destination.
