What is 3PL in supply chain? What is the difference between 3PL and 4PL?
3PL stands for third-party logistics. The service includes: warehousing management, transportation management, packaging, handling, logistics processing, etc.
4PL stands for forth-party logistics. It is a supply chain integrator that mobilizes and manages resources, capabilities and technologies. Thus it provides a comprehensive supply chain solution. It normally refers to a company that seeks out problems in the existing logistics process for customers and provides consulting services. It helps the customers optimize the existing workflow.
Is international freight forwarder 3PL?
Yes. International freight forwarder like ForwarderOne accept the entrustment of the import and export consignees, consignors and other parties. Freight forwarder organizes and handles international cargo transportation and related business in the name of the entrusting party or in their own name.
Amazon sellers is very familiar with FBA. FBA service helps sellers solve the warehousing and logistics. It improves product delivery efficiency and thus improve the customer satisfaction.
With the rise of independent D2C website, such as Shopify store, onshore warehouses other than FBA FCs have attracted a lot of attentions. Even among Amazon sellers, we also suggest sellers to have a backup onshore warehouse. 3PL warehouse is the way to go.
What is the benefit of using 3PL warehouse service? Difference between 3PL and 4PL
Reduce fixed cost
3PL warehouse can help you perform inventory management more effectively to reduce fixed costs. Most 3PLs have a tier fee structure. The more order volume you have, the lower the fee would be.
Help you concentrate on business growth
By handing over part or all of the supply chain logistics to 3PL platform, sellers will have more energy to focus on the core business.
It is more time efficient to spend more time on high-ceiling things like product launch, marketing and team growth.
Improve customer satisfaction
3PL can provide more efficient delivery services. It will reduce consumer purchase-receiving cycle. In case of handling product return or exchange, it can also respond quickly. As the business grows, it can scale up with better than in-house warehouse.