Third party logistic
Logistikos rašinys. Third party logistic.
Vasiliauskas and Jakubauskas (2007) excludes 4 categories of 3PL providers which are similar as Hertz and Alfredsson (2003) has excluded earlier:
Standard 3PL providers. It’s simple and basic form of 3PL. They perform these activities: “pick and pack, warehousing and distribution (business) (Vasiliauskas, 2007:70). For majority of these companies, 3PL isn’t their main activity.
Different authors exclude many different advantages of third party logistics. Therefore, we can exclude two main advantages of 3PL – it’s value-added services and reduce of overall costs. Logistics require particular warehouses, transportation, equipment, IT systems, which should be updated regularly. All these things require time, money and particular knowledge. Most of the producing and selling companies don’t have enough time or money to adapt in the market quickly. So, using third party logistics services allows to reduce costs and more important – to stay to their core business and competencies. Third party “logistics networks are characterized by linked database, paperless transaction, analytic modelling and real-time tracking and tracing capabilities, all of which lead to faster time to market, lowerinventories.” (Bhoyar, et al:2013:192).
Positive feedback about advantages of using third part logistics are discussed in the 19th Annual Third Party Logistics study.19th Annual Third Party Logistics study (2015) shown that 3PL companies and their customers are continuously working successfully together.