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3PL providers or third party logistic companies are companies that are contracted to manage other company's supply chain. This management includes aspects such as warehousing, inventory management, picking, packing, shipping and distribution. Many companies both medium and large are currently contracting third party logistic companies as they have realized the benefits they can derive from outsourcing their supply chain activities. 3pl providers

3pl companies have a huge resource base that includes staff, equipments and network capabilities. These companies do have professional staff who have undergone specialized training and have several years of experience in distribution management. This ensures that they undertake their task in a professional and ethical manner.

They also have the latest equipments required to ensure smooth distribution and transportation of ones goods and products. Their latest software helps them effectively and efficiently manages the distribution process. Furthermore, they have several strategically located warehouses and distribution centers worldwide

With such companies, organizations can effectively concentrate and put all their efforts towards attaining their organizational goals and objectives. This is mainly because all their distribution has been contracted to a logistic company.

The outsourcing of the supply chain management function also saves money to the organization that would otherwise be spending it on paying supply and distribution staff, acquiring and maintaining a warehouse and also purchasing transportation and distribution vehicles.These is very beneficial especially if organizations need to save money.

Furthermore, third party logistic companies are reliable as they can be trusted with a company's product and also ensure that products are delivered on time as they monitor the shipment by advanced tracking software.

Most companies do contract 3PL providers especially when they are moving or expanding to new regions. With third party logistic providers, companies need not worry about distribution chain in the new regions they hope to expand to as these companies have existing distributions networks that can be employed effectively.