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How Does Third Party Logistics Work?

by Byrne Anderson
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The term ‘outsourcing’ has become the norm for many small businesses, as they do not have the resources to carry out essential services, particularly with logistics. The e-commerce boom has spawned a new industry, called third-party logistics (3PL) and in this article we will take a look at how 3PL actually works.

Tailored Solutions

The 3PL provider has all the resources needed to provide a tailored solution for their many clients, such as FCB Logistics customised freight solutions that support many Queensland businesses that rely heavily on their expertise. Such is the flexibility of the 3PL company, they can turn on and off their services according to your needs; some online retailers only use their logistics partner at busy times like Christmas and New Year, and they can kick in their services in an overflow way, which means you only pay for the services you use.

Picking, Packing & Delivery

The online retailer would deliver a selection of their products and packaging to the 3PL provider’s warehouse, and as orders come in, they would be fulfilled as soon as is possible. Same day delivery is not uncommon, especially for short distance deliveries, and such is the extensive network of carriers, packages can be delivered to any global location. This allows the online retailer to focus on improving the customer’s experience, while the expert handles all of their logistics, and if you are looking for a logistical solution, a Google search will put you in touch with a local provider.

Heavy Haulage

Businesses that require heavy haulage would prefer to outsource, as the resources needed are considerable, and there are specialist haulage contractors that move very heavy loads. The mining industry, for example, makes good use of third-party heavy haulage companies, and such heavy machinery must be transported with care.

Digital Communication

This is the key to successful logistics, and the 3PL provider would always be in touch with the client, ready to respond at a moment’s notice. The busy e-commerce website would allow the logistics company to access sections of their ordering network, which allows them to receive orders instantly, and this kind of communication is essential if orders are to be processed in a timely manner.


Billing would typically be over a 30-day period, and the client can suspend the service at any time, and with most 3PL providers, you do not need to enter into a lengthy contract in order to use their services. Most providers will accept one month’s notice to terminate the service, and, as mentioned above, you can suspend the service at any time and for any reason.

Global Reach

Thanks to the Internet and digital solutions, the logistics company would be part of a global network, which means they can deliver to any destination, which is ideal for the online retailer who has customers all over the world. Freight solutions include road, rail, ship and air, and with an online network, arranging delivery has never been easier.

The 3PL logistics industry works tirelessly in the background, and next time you receive a delivery, spare a thought for those who came together to bring the goods to your door.

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