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Third-Party Logistics (3PL):

Types of 3PL Providers


Transportation-Based Warehouse/Distribution-Based Forwarder-Based Financial-Based Information-Based

Chapter 11

Management of Business Logistics, 7th Ed.

Third-Party Logistics (3PL):

Types of 3PL Providers

Transportation-Based Services extend beyond transportation to offer a comprehensive set of logistics offerings. Leveraged 3PLs use assets of other firms. Nonleveraged 3PLs use assets belonging solely to the parent firm. Ryder, Schneider Logistics, FedEx Logistics, and UPS Logistics are examples of 3PLs.
Management of Business Logistics, 7th Ed. 2

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Third-Party Logistics (3PL):

Types of 3PL Providers

Warehouse/Distribution-Based Many, but not all, have former warehouse and/or distribution experience. Transition to integrated logistics has been less complex than for the transportation based providers. DSC Logistics, USCO, Exel, Caterpillar Logistics, and IBM are examples of warehouse/distribution-based 3PLs.
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Third-Party Logistics (3PL):

Types of 3PL Providers

Forwarder-Based Essentially very independent middlemen extending forwarder roles. Non-asset owners that capably provide a wide range of logistics services. AEI, Kuehne & Nagle, Fritz, Circle, C. H. Robinson, and the Hub Group are examples of forwarder-based 3PLs.
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Third-Party Logistics (3PL):

Types of 3PL Providers

Financial-Based Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory. Cass Information Systems, CTC, GE Information Services, and FleetBoston are examples of financial-based 3PLs.
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Third-Party Logistics (3PL):

Types of 3PL Providers

Information-Based Significant growth and development in this alternative category of Internet-based, business-to-business, electronic markets for transportation and logistics services. Transplace and Nistevo are examples of information-based 3PLs.

Chapter 11

Management of Business Logistics, 7th Ed.

A Note on Fourth-Party Logistics (4PL): The Next Evolution?

Thought of as supply chain integrator, a firm that assembles and manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver a comprehensive supply chain solution.12 (Fig. 11-15, Appendix) 4PLs manage and direct the activities of multiple 3PLs, serving as an integrator.
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Figure 11-15

Fourth-Party Logistics (Registered Trademark of Accenture, Inc.)

Chapter 11

Management of Business Logistics, 7th Ed.

Need for Collaborative Relationships13

Supply chain relationships are most effective when collaboration occurs. Collaboration is facilitated by the ability of the supply chain partners to readily access and exchange information over the Internet. Table 11-5 lists the Seven Laws of Collaborative Logistics and is a guide to establishing and maintaining collaborative logistics networks.
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Table 11-5

Seven Laws of Collaborative Logistics

Chapter 11

Management of Business Logistics, 7th Ed.

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