| The ultimate goal of having a higher capacity | | | | cross-docking. Like standard 3PL providers, the ability |
| production/manufacturing business is to make money | | | | of service developers to offer innovative solutions is |
| from selling products. But it's important to remember | | | | compromised by their narrower expertise in specific |
| that a shipping business's bottom line depends of | | | | solutions, making them a poor choice for a shipper |
| more than its sales; it also depends on how much it | | | | that needs to overhaul its shipping process. |
| spends on the shipping process. Next to payroll, the | | | | Customer Adapters |
| cost of the shipping process is the highest cost that | | | | Unlike standard 3PL providers and service developers, |
| most producers/manufacturers incur, which makes | | | | customer adapters are ready to handle your entire |
| choosing the right type of shipping logistics experts a | | | | shipping process. But they aren't in the business of |
| necessity. Some companies have their own logistics | | | | offering innovative solutions. If you have an effective |
| department. But those that don't typically have five | | | | shipping process in place and are tired of overseeing |
| options for shipping logistics expertise, the first four | | | | it, a customer adapter will handle the job. But if you |
| of which fall within the realm of third party logistics | | | | need new shipping solutions, a customer adapter isn't |
| (3PL): Standard 3PL providers, service developers, | | | | the right choice. |
| customer adapters, customer developers and | | | | Customer Developers |
| transportation logistics software. | | | | Like customer adapters, customer developers handle |
| Standard 3PL Providers | | | | the entire logistics process. But they also discover |
| At first glance, standard 3PL providers are attractive | | | | and implement innovative shipping solutions. However, |
| due to their low cost of service. But there's a reason | | | | if you don't have the budget to hire your own |
| for their affordability: 3PL providers don't practice 3PL | | | | logistics experts, then you probably don't have the |
| as their core competencies, instead focusing on | | | | budget to hire a customer developer. |
| specific freight transportation disciplines, such as pick | | | | Transportation Logistics Software |
| and pack and warehousing. If you only need to | | | | Logistics software offers a comprehensive, |
| improve a specific aspect of your shipping process, | | | | innovative approach to transportation at an |
| hiring a standard 3PL provider may be the best | | | | affordable price. Available as either a software as a |
| option. But if you need comprehensive, innovative | | | | service (SaaS) solution or an onsite software solution, |
| shipping solutions, standard 3PL is not the answer. | | | | logistics software lets shipping companies become |
| Service Developers | | | | their own logistics providers without possessing |
| Service developers are similar to standard 3PL | | | | expertise in logistics. The software performs the |
| providers. While they do practice 3PL as their core | | | | work of a logistics expert, allowing shippers to chose |
| competency, they focus on "value-added" shipping | | | | from among recommended shipping options through |
| solutions, such as tracking and tracing and | | | | a user-friendly interface. |