Rise of Third Party Logistics Providers:
The growth of 3PL companies began back in the 1980’s in India when businesses began to look for new ways in which they could outsource logistics functions and concentrate on their core business.
One company that has been associated with the 3PL revolution is North West Carrying Company (NWCC). The company’s innovative supply chain logistic services changed the way in which business to business transactions operated.
As companies saw the benefits of outsourcing delivery and warehousing functions, the number of third party logistics companies began to rise offering an ever increasing number of services. The increasing numbers of 3PL’s inevitably led to increased competition between these firms, which led to greater savings for the companies who employed them.
Selecting A 3PL
Deciding to a use a third party logistics company is a decision that depends on a variety of factors that differ from business to business. The decision to outsource certain business functions will depend on the company’s plans; future objectives, product lines, expansion, acquisitions, etc.
Once a decision has been made to outsource certain processes then a company will begin a search for the right 3PL that fits all their requirements at the best possible price. There are three types of Third Party Logistics Company that operate today.
- Asset Based
- Management Based
- Integrated Providers
Asset based third party logistics companies like NWCC use their own trucks, warehouses and personnel to operate their business. Management based companies provide the technological and managerial functions to operate the logistics functions of their clients, but do so using the assets of other companies and do not necessarily own any assets. The third category, Integrated Providers, can either be asset based or management based companies that supplement their services with whatever services are needed by their clients.
NWCC delivers cost effective, customised supply chain solutions by using a global network of multi-functional, shared facilities:
- Flexible storage & despatch services
- Order fulfilment to multiple, local markets
- Cost-effective, pay-as-you-go options
- Rapid implementation of your existing processes
All these are fully supported by our logistics expertise, dedicated client and project management, and our exclusive web-based order tracking & management solutions.
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