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Third Party Logistic

3PL
Introduction
Third party logistics an outsider company, which provide service to those company who outsource all or part of the firm’s material management and product distribution function. 3PL services are becoming the important part of company main activity to handle the very critical function material management as the company wish to concentrate on their core business of development of various turnkey projects which help/promote the development of country and increase the employment opportunity.
Definition
3PL means outsourcing activities including transportation and warehouse to outside firm
User:
 FMCG
 Medical
 Dangerous Goods
 Retail
 Pharmaceutical
 Catalogues
 E-tailing
What is 3pl
First party: shipper or supplier
Second party: buyer
Third party: a firm acting as a middleman
A logistics triad is a: three-way relationship between a buyer of goods, the supplier of those goods and a logistics service provider moving and/or storing goods between buyer and supplier.

A long-term formal or informal relationship between a shipper and a logistics provider to render all or a considerable number of logistics activities for the shipper.
Activities carried out by a logistics service provider on behalf of a shipper and consisting of at least management and execution of transportation and warehousing.

Terms sometimes used other then 3PL

 Outsourcing
 Contract logistics
 TPL
 Logistics service providers
Causes for Development of 3pl

Earlier all company use to carry all logistic work by themselves which use to be hercules work by themselves which use to divert their attention from their core business and which would lead delay in implementation of the project and thereby tarnish their image in market which ultimately lead to dissatisfaction in market. Since logistic was not there coring business, they decided to outsource logistic business to other who...