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What is 3PL? Learn More about 3PL Here

3pl

What is 3PL?

In Indonesia, 3PL is a very popular business. 3PL is a third-party company that is in charge of carrying out supply chain management activities (supply chain management). 

These jobs typically involve the transportation and distribution of commodities, beginning with the trucking process and ending with end-to-end warehousing. 3PL not only handles shipments for huge corporations, but also for small enterprises and even single shipments.

Not only that, but many shipping vendors and expedition services now use 3PL services as well. This collaboration is carried out in order to reach many rural places in Indonesia, particularly if delivery capacity has been exceeded. 

The utilization of advanced technology, such as the live tracking tool and other elements to provide delivery transparency, makes 3PL appear incredibly fascinating.

If you run an internet business, you're well aware that the process is time-consuming, costly, and even exhausting. You'll need more human resources if you manage a large internet firm. 

Now that you have 3PL, you won't have to worry about warehousing issues when it comes to transporting items. 3PL will take care of everything!

Various types of 3PL services

various-3pl

After knowing what 3PL is in general, you should also know the various types of 3PL services in Indonesia.

Service developer

As a 3PL service provider, service developers usually offer very complex services to their users, ranging from tracking services, cross-docking, and even special-case delivery, one of which is providing strict supervision to maintain the security of goods deposited in the warehouse.

Information technology systems provided by service developers are usually very solid and focus on economies of scale and a larger scope than standard 3PL services.

The customer adapter 

This 3PL service provider usually works by serving customers (3PL users) according to the customer's own requests. Usually, the customer adapter controls most of the logistics activities of the companies that use its services. 

Typically, the customer adapter can be relied upon to significantly and dramatically improve logistics performance, but is less suitable for developing new services. 

The customer developer

Generally, the customer developer is integrated with the service users. This 3PL service provider will take over all of the company's logistics activities. 

In the contract, the customer developer usually holds a contract with the customer. After that, this 3PL provider will sourcing contracts to various vendors who are partners or networks.

Why is 3PL Important?

Both small and large companies will be greatly helped by their cooperation with 3PL. Ideally, a 3PL service provider will provide services tailored to the company's needs. 

So, to be clear, here are some reasons why you need 3PL for a more advanced and smooth online business. 

3PL uses the latest technology

The 3PL company always adapts to the times. They try to update all the technology and equipment used for the smooth running of their own company's business and the companies that use their services. 

With technology and systems that are constantly being updated, you don't have to worry about money to invest in updating your own technology for the sake of running your business, because after all, everything will be managed well by the 3PL provider you are working with!

Certification that costs a lot of money 

If you have an online business, whether small or large, you may have thought about building or renting your own warehouse. In fact, managing a warehouse is a complex job, you know! 

You must provide technology and systems that can ensure all your goods are safe for storage in the warehouse. Not to mention talking about the need for human resources.

Now, because warehouse management is very complex, standard procedures obtained through various certified trainings are needed. But of course to get such a certification also takes a long time and costs a lot of money. 

This is one of the important reasons why you need 3PL services. By using this third party service, you don't have to bother with certified training for warehouse handling.

Focus on selling goods

Imagine if customer demand for the goods you offer soars. Surely you need help from a third party right? Especially when we talk about warehousing. 

Here, you will face complex problems, especially when it comes to warehouse management costs. Well, that's why you need a 3PL service provider. With this collaboration, you can focus on developing a business that has a direct impact on increasing revenue. 

3PL companies are companies that are experts in logistics

3PL service providers are certainly certified and have experts who are certainly experienced in the logistics field. Usually, these service providers will also provide consulting services on logistics issues for your business before you finally decide to use their services. 

More flexible business

If you use 3PL services, the business you are running will become more flexible. For example, if you need a bigger warehouse, you just need to contact a 3PL company. So, when you're on vacation, you don't have to stress about business. 

More time and cost saving

Setting aside money to create a warehouse is surely a strain for those of you who have recently launched a business. You must consider everything from the cost of purchasing property and building or renting a facility, to the cost of purchasing Warehouse Management System (WMS) technology, certification training, and even the amount of human resources required. 

You won't have to spend additional money or time managing the warehouse if you use 3PL services.

Increasing client satisfaction

You may focus on enhancing customer service, from devising plans for keeping communication with consumers to strategies for acquiring new customers, if you've delegated most of the logistics issues to your 3PL service provider. What piques your interest?

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