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Third Party Logistics: Logistics Management

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Third Party Logistics: Logistics Management
By
Hossam El- Deen Mustafa Dawood

Under the supervision of
Dr. Amr Elsaeed

Third Party Logistics ( 3PL )

3PL stands for a third-party logistics provider. This is a company that provides third-party (or outsourced) logistics services for the partial or complete functions of their supply chain management. These types of logistics providers usually specialize in transportation, warehousing or integrated operation services that are able to be customized and scaled to the requirements of the customer. These requirements are commonly based on the delivery service requirements for their materials and products. Market conditions also play a major role in this process. This article will go into further detail about 3PL providers.

In recent years, companies have increasingly embraced one-stop global logistics services. By allowing companies to concentrate on their core competencies, these third-party logistics (3PL) providers can improve customer service and reduce costs. A 3PL provider can act as a lead logistics provider or a fourth-party logistics (4PL) provider aligned with a host of 3PL providers. This article explores the major considerations in searching for a 3PL provider to expedite the movement of goods and information. With the help of established theories in the literature, we use an evaluation criteria framework built around IT to examine a 3PL provider. Third Party Logistics is the activity of outsourcing activities related to Logistics and Distribution. The 3PL industry includes Logistics Solution Providers (LSPs) and the shippers whose business processes they support.

It is the function by which the owner of goods (The Client Company) outsources various elements of the supply chain to one 3PL company that can perform the management function of the clients inbound freight, customs, warehousing, order fulfillment, distribution, and outbound freight to the clients customers.

Third-party logistics providers

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