A third-party logistics provider is (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or "third party") logistics services for part, or all of their supply chain management functions. Third party logistics providers typically specialize in inbound customs clearance at port of origin, ocean freight, customs clearance at port of destination, warehousing and delivering to importers or their customers and these services can be scaled and customized to customers' needs based on market conditions and the demands and delivery service requirements for their products and materials. Another value added service that comes with 3PL service provider is IT infrastructure that brings visibility of the material and also tracking the shipments on real time basis.
3PL Segment | 2012 Gross Revenue/Turnover (US$ Billions) |
---|---|
Domestic Transportation Management – Asset Based | 11.6 |
Domestic Transportation Management – Non Asset Based | 45.1 |
International Transportation Management | 46.3 |
Value-Added Warehousing and Distribution | 35.8 |
Software | 3 |
Total | 141.8 |
Shipper Percentages | 3PL Percentages | |||||
---|---|---|---|---|---|---|
Outsourced Logistics Service | All Regions | North America | Europe | Asia-Pacific | Latin America | |
International Transportation | 76% | 64% | 86% | 79% | 82% | 71% |
Domestic Transportation | 71% | 67% | 81% | 76% | 66% | 88% |
Warehousing | 63% | 61% | 72% | 59% | 51% | 83% |
Freight Forwarding | 53% | 54% | 60% | 46% | 47% | 64% |
Customs Brokerage | 52% | 52% | 57% | 44% | 57% | 54% |
Reverse Logistics (defective, repair, return) | 26% | 27% | 31% | 23% | 10% | 60% |
Cross-Docking | 25% | 29% | 31% | 18% | 19% | 64% |
Product Labeling, Packaging, Assembly, Kitting | 25% | 25% | 31% | 21% | 20% | 65% |
Transportation Planning and Management | 22% | 24% | 27% | 19% | 15% | 70% |
Inventory Management | 19% | 16% | 15% | 21% | 17% | 64% |
Freight Bill Auditing and Payment | 18% | 32% | 13% | 11% | 05% | 34% |
Order Management and Fulfillment | 16% | 20% | 19% | 16% | 09% | 65% |
Information Technology (IT) Services | 13% | 16% | 16% | 14% | 09% | 50% |
Service Parts Logistics | 12% | 11% | 14% | 12% | 12% | 39% |
Customer Service | 10% | 08% | 07% | 17% | 14% | 67% |
Supply Chain Consultancy Services Provided by 3PLs | 10% | 14% | 07% | 09% | 09% | 56% |
Fleet Management | 08% | 08% | 08% | 08% | 09% | 26% |
LLP (Lead Logistics Provider) / 4PL Services | 08% | 08% | 17% | 04% | 04% | 39% |
Sustainability/Green Supply Chain-Related Services | 06% | 03% | 07% | 06% | 06% | 31% |