Third party logistics services exist to help a business expand. That seems simple enough, but once you get further into the process you realize that there is more than just one type of logistics provider. Indeed, there are four main models that you can choose from, depending on what your business needs to expand.
The most basic of all third party logistics companies will offer the average service of handling your transportation needs, warehouse needs, and inventory checking. This is exactly what you were looking for in the beginning- but note that the 3PL company won’t do much more than this at the standard level. This model is best for small businesses.
If your business has outgrown the basic model of third party logistics, the next model up for discussion would be the service developer model. This model is used when a business needs extra features that other companies don’t offer. Typically the extra features aren’t anything too drastic- perhaps something such as an improved method of tracking orders or more options in package design. This model typically costs more.
The customer adapter is the next model to discuss. It takes care of the majority of your operations. It will handle all of the basic logistics activities on a personal level. It will also share developed services that help improve your current business model. At this point the model doesn’t fully integrate with your business- but it certainly comes close as it does handle much of the work that you would otherwise face.
The four models explained aren’t hard to look at and determine where your business would fit. A large business with plenty of room for expansion is best suited for the customer developer model, while other businesses can easily be satisfied with a standard model or something similar. The best course of action at this point is to come into contact with several 3PL services to see when you can speak to them about a free consultation service.
At the extreme end of the spectrum we have the customer developer model. This model allows a 3PL business to completely integrate with your own business. It will be much like you have just hired a whole new set of employees that work directly with you to develop your business. This model of 3PL services is extremely limited in the number of clients it can sign on- so these are the most rare of all.
Final Thoughts
3PL businesses are more abundant than most think. Most major cities should have more than a few to choose from. Take your time to go to each one to see what they offer, how much it will cost you, and whether you will or will not need a third party logistics service in the first place.
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