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TYPES OF 3PL PROVIDERS

Hertz, and Alfredsson (2003) describe four categories of 3PL providers: Hertz, S., & Alfredsson, M., (2003), Strategic development of third party logistics providers, Industrial Marketing Management, (32), 139-149
  • ''Standard 3PL provider:'' this is the most basic form of a 3PL provider. They would perform activities such as, Pick And Pack , Warehousing , and Distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not their main activity.


  • ''Service developer:'' this type of 3PL provider will offer their customers advanced value-added services such as: Tracking And Tracing , Cross-docking , specific packaging, or providing a unique security system. A solid IT foundation and a focus on Economies Of Scale and scope will enable this type of 3PL provider to perform these types of tasks.


  • ''The customer adapter:'' this type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company’s Logistics activities. The 3PL provider improves the logistics dramatically, but do not develop a new service. The customer base for this type of 3PL provider is typically quite small.


  • ''The customer developer:'' this is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL provider integrates itself with the customer and takes over their entire logistics function. These providers will have few customers, but will perform extensive and detailed tasks for them. by greg



NON ASSET-BASED LOGISTICS PROVIDERS

This 3PL performs duties such as quoting, booking, routing, and auditing, but doesn't need to own warehousing facilities, vehicles, aircraft, or any other transportation assets. This type of 3PL may possess only desks, computers, and freight industry expertise.

To be useful, this type of provider must show its customers a benefit in financial and operational terms by leveraging exceptional expertise and ability in the areas of operations, negotiations, and customer service in a way that complements its customers' preexisting physical assets.


FOURTH-PARTY LOGISTICS


Fourth-party logistics ('''4PL'''), '''Lead-Logistics-Provider''' or '''4th Party Logistics''', is a term coined by global consulting firm Accenture :



4PL is advertised as a refinement on the idea of 3PL , a firm that provides outsourced or "third party" logistics services to companies for part or sometimes all of their supply chain management function. A 4PL uses a 3PL to supply service to customers, owning only computer systems and Intellectual Capital . What are you willing to give up? Logistics Today, March 2005

It has been argued that a 4PL is the same thing as a Non Asset-Based 3PL.


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