3.) Why Would A Company Use An Asset-based 3pl Service Provider Versus A Non-asset Based Provider?

Engaging the services of a 3PL can really help you go your business organisation off the ground, both third party logistics figuratively and literally (air freight, anyone?). When describing themselves, virtually 3PLs tend to follow the same format, giving you a brief overview of what they are and what they do.

3PL is shorthand for third party logistics, and has get a term widely used to describe any company that deals with the logistics of order fulfilment, including logistics software.

Then which type of third party logistics visitor is best suited for your business?

At that place are dissimilar kinds of 3PLs around and choosing the right one is essential to maximising the potential of your supply chain.

Asset based 3PL

An asset based 3PL has its own equipment for use within the supply chain, for example, various types of vehicles for transportation or warehouse infinite.

3PLs that autumn nether this bracket often take hands on feel with all aspects of distribution, from storage, pick and packing, freight forwarding and more. Using an nugget based 3PL cuts out the middle homo as you're dealing direct with the company who will be packaging and distributing your products.

Non asset based 3PL

A non-asset based 3PL usually does not have its own fleet of vehicles, warehouses or other associated parts of the supply chain. What they do have is a selection of partner companies who provide these services, and tin pair concern owners with a single provider or several to mix and match different services.

In essence, they provide a logistics management packet and tin can oversee your society fulfilment as much or as petty as you lot demand. Experienced non-nugget based 3PLs should be able to provide you with a complete warehousing solution based on your criteria and the abilities of their partners.

These are just 2 common examples of 3PL providers, and there are many companies who fall in betwixt these ii brackets, offering different services depending on their size, location and feel.

It's fine to inquire questions when budgeted a 3PL for the first time and more than frequently than non, is highly recommended then both you and the 3PL know exactly what you're after in terms of a logistics provider.