3PL transportation is the outsourcing of a company’s logistics and supply chain management, including warehousing, transportation, and distribution, to a third-party logistics provider to streamline logistics operations and reduce costs. It encompasses a wide range of services that ensure the entire logistics operation runs smoothly, from inventory management to freight forwarding.
Outsourcing transportation management to a third-party logistics provider allows businesses to reduce shipping costs, enhance supply chain efficiency, and improve delivery times—ultimately clearing bottlenecks when it comes to business growth.
Here we’ll delve into what 3PL transportation is in-detail, highlight the key components of 3PL transportation, and provide examples of 3PL transportation services. Let’s get started!
What is 3PL Transportation?
3PL transportation refers to the outsourcing of transportation and logistics management to a third-party provider. Overall, third-party logistics providers (3PL providers) typically specializes in:
- Transportation Management,
- Warehousing,
- Freight Forwarding,
- And a range of other value-added services that support the movement of goods through the supply chain.
3PL companies can differ amongst each other in their specialization, or choose to provide all logistics solutions. A 3PL transportation company, which specializes in transportation, can act as an intermediary between a company and its suppliers or customers, managing the entire transportation process. They typically offer a complete suite of logistics services, revolving around transportation management, helping businesses manage their shipping costs more effectively.
3PL Transportation Company Services: Transport and Freight Forwarding
3PL transportation companies provide several services within the realm of transportation: freight shipping and providing a vast freight forwarding network to the client. These services help businesses reduce operational costs and improve overall supply chain efficiency.
Transportation Management
Transportation management is one of the core services of 3PL transportation companies. These companies are responsible for organizing and optimizing the shipping methods to ensure goods are delivered to customers on time and at the lowest cost. This includes route planning, freight forwarding, and managing relationships with carriers to ensure efficiency.
Freight Forwarding
Providing a freight forwarding network is a key advantage of a partnership with 3PL transportation companies. Freight forwarding involves the coordination and shipment of goods across international borders. Freight forwarders manage customs clearance, choose optimal shipping routes, and liaise with various carriers to move goods efficiently. For businesses involved in global trade, partnering with a 3PL provider can simplify international shipping and reduce shipping costs associated with customs and transit times due to the freight forwarding connections they may have.
Key Components of 3PL Transportation
3PL transportation involves various strategic components that contribute to the overall supply chain efficiency. These components include advanced technologies, operational efficiencies, and industry knowledge.
Here’s a breakdown of the main components:
1. Logistics Operations
Efficient logistics operations are the backbone of any successful 3PL transportation company. This involves the seamless integration of transportation with inventory management, warehousing, and distribution operations. 3PL transportation companies help businesses manage their supply chain operations by optimizing routes, reducing shipping times, and ensuring faster delivery to improve the customer experience.
2. Warehouse Storage and Distribution Services
Although transportation is a major focus, 3PL transportation companies may also offer distribution services and warehouse space to store goods before they are shipped out. Efficient warehousing allows businesses to manage inventory more effectively, reducing the need for large capital investments in storage and helping maintain operational flexibility. This integration of transportation and storage creates operational efficiencies that lead to cost savings for businesses and more reliable delivery timelines.
3. Technology Integrations
One of the key benefits of working with a third-party logistics provider is the access to advanced technologies developed for efficient logistics that help streamline operations. These technologies include:
- Warehouse Management Systems (WMS)
- Transportation Management Systems (TMS)
Along with other real-time tracking tools, which provide visibility into the movement of goods. With these systems, businesses can better predict delivery times, reduce errors, and lower costs for logistics teams by optimizing the supply chain.
Examples of 3PL Transportation Services
To understand the impact that 3PL providers have on transportation, here are a few examples of how these services play out in the real world:
1. Retail and Manufacturing
In the retail and manufacturing sectors, supply chain operations often involve complex transportation needs across multiple regions.
A 3PL transportation provider can manage both long-distance shipping and regional distribution, allowing these industries to maintain a robust supply chain. For instance, a 3PL company can help reduce the cost of shipping beyond carrier rates by leveraging volume-based discounts and optimizing shipping methods for specific destinations.
2. Global Trade and Freight Forwarding
For companies dealing with international shipments, a freight forwarder acting as a 3PL transportation provider can handle all aspects of cross-border shipping.
This includes choosing the best shipping methods, handling customs clearance, and ensuring supply chain visibility through digital platforms that track shipments in real time. This level of integration allows companies to streamline their global supply chain while keeping costs in check.
3. Specialized Industries: Beverages & Paper Products
In industries which require special care like beverages and paper products, 3PL transportation services manage the complexities of transporting bulk goods and fragile products.
- For the beverages industry, a 3PL provider can offer temperature-controlled transport, like reefers, ensuring products like soft drinks, juices, and alcohol are delivered under optimal conditions.
- Similarly, in the paper products sector, 3PL providers manage the transportation of large, often bulky shipments, ensuring they are efficiently moved to warehousing and distribution centers or retailers without damage.
3PL providers help businesses in these sectors optimize shipping costs, maintain product integrity during transit, and ensure timely deliveries.
3PL Transportation Company in Washington State: Stryder USA
Stryder USA is a 3PL company which specializes in transportation services in the Seattle–Tacoma–Bellevue metropolitan area in Washington State. We provide end-to-end logistics solutions for a wide range of industries, including beverages, paper products, and more.
With our strong presence in the Pacific Northwest of the USA and Canada, Stryder leverages our extensive knowledge of the local market and global supply chain operations to offer businesses efficient transportation and distribution services.
Stryder USA stands out by providing freight transportation management solutions, ensuring businesses can optimize their logistics operations for maximum cost savings and operational efficiency. Our expertise in freight forwarding, warehousing, and logistics, has helped businesses scale quickly while maintaining high standards of customer service.
Ready to streamline your logistics and reduce costs? Partner with Stryder for 3PL transportation services which optimize your supply chain and drive business growth.
Contact us at 253-458-7705 or sales@go-stryder.com for 3PL services today!
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