3PL logistics refers to a logistics service model that accepts customer orders to provide specialized or comprehensive logistics system design and operation services. The 3PL logistics service is based on modern technology of logistics activities, including information technology, especially electronic information technology based on computers and mobile communication. 3PL logistics is a technical support for integrated logistics and personalized logistics management, which can fully support the integration of operations, visualization monitoring, personalized services, and other processes to meet the technical needs of customers for all or part of their logistics requirements.
3PL logistics can improve operational efficiency
The improvement of operational efficiency of 3PL logistics means the development of each independent activity that ultimately forms logistics, such as transportation and warehousing, which is actually warehouse outsourcing. The operational efficiency of warehouse outsourcing depends on sufficient facilities and equipment and skilled operational skills. Another more advanced role within the scope of operational efficiency is to coordinate continuous logistics activities. In addition to operational skills, coordination and communication skills are also required. The coordination and communication skills of warehouse outsourcing are largely related to information technology, which is generally achieved through this tool.
3PL logistics can integrate customer operations
Another value-added method brought by 3PL logistics services is the introduction of multi-client operations or resource sharing among clients. For example, the warehouse outsourcing and transportation network of multi-client integration can use similar resources combined together, and the scale benefit of integrated operation becomes an important aspect of improving efficiency. The complexity of the integrated operation of 3PL logistics requires more information technology and skills. This integrated value-added method is also applicable to the transport and warehouse outsourcing networks of individual clients for internal operation, and the economies of scale demonstrated are increasing. Of course, some major customers with a large amount of cargo flow often invest in coordination and communication skills and their assets to independently integrate the company's logistics resources.
The strategic benefits of 3PL logistics
The warehouse outsourcing of 3PL logistics can also produce strategic significance, namely flexibility. This includes the flexibility of the geographical range (setting or revoking points) and the flexibility of adjustment according to environmental changes. It is equally important to concentrate on the management level and strategic level of the main business. The benefits of sharing risks can also be obtained through 3PL logistics services.