Our Process: 4PL vs 3PL Service Providers
TH Logistics takes an innovative approach to offering 4PL supply chain logistics services to small and large business enterprises
Logistics is an important aspect of your business, but It can be difficult to decide which logistics provider is right for you. You can either go with a 3PL (third-party logistics) or a 4PL (fourth-party logistics) provider like TH Logistics. It’s important to understand that both types of providers offer similar services to help your company optimize the supply chain. However, there are some key advantages that you will realize when you work with a 4PL rather than a 3PL.
What Is a 3PL Provider?
The best way to describe a 3PL is that it’s a logistics provider that oversees the transportation and logistics for a company. They may also provide other services such as picking and packing inventory. They do not have any control over the management of your supply chain. In fact, this is your responsibility and they only do what you ask of them.
Functions That 3PL’s Handle Include:
- Transportation & Logistics Services
- Inventory Storage & Management
- Picking & Packing of Inventory
- Freight Forwarding & Cross-Docking
- Customs Brokerage
- Information Technology Solutions
What Is a 4PL Provider?
In contrast to a 3PL, 4PL providers like TH Logistics take on all of the management and coordination of logistics, transportation, and other supply chain activities. They become the single point of contact for every player within your supply chain including suppliers, transportation experts, and your company’s management. In other words, they relieve you of all of the responsibility of the logistics operations and the supply chain.
Functions That TH Logistics Handles Include:
- Freight Sourcing
- Logistics Strategy Planning
- Analysis of Transportation Expenses & Performance
- Project Management
- Business Planning & Consulting
- Management of Logistics (Inbound, Outbound, and Reverse)
- Inventory Planning & Management
Key Advantages of TH Logistics’ 4PL Services
If you want to improve the efficiency of your supply chain, outsourcing logistics is a wise move. But, it’s important to understand what type of provider is best for your business. While there are certainly advantages of using a 3PL for small and medium-sized companies, there are some key advantages that our team offers to our customers.
- We will identify and take action to minimize inefficiencies in your company’s supply chain.
- Outsourcing to TH Logistics allows your business to focus on operations and products instead of logistics.
- We don’t focus on your daily operations, our sole focus is optimizing your supply chain.
- We oversee and manage transportation and logistics assets such as trucks and warehouse facilities.
- Our experts coordinate with and oversee 3PL providers to ensure a smooth supply chain.
- We focus is on the entire supply chain rather than focusing on one-off transactions.
- We act as the sole contact and manager for every aspect of your supply chain.
Perhaps the biggest advantage of dealing with a 4PL like TH Logistics is that we are not simply a logistics provider. We consider our clients to be partners and we work hard to ensure that their business thrives. We also collect data points that we use to create a leaner, more cost-effective, productive supply chain. In other words, working with us will give your business a clear advantage over your competition by allowing you to focus on what you do best and taking away all of the headaches that the supply chain can produce.
The TH Logistics Advantage
TH Logistics is more than just a logistics provider, we’re a complete supply chain management company that provides transportation, warehousing, and many other supply chain services. Our professional, experienced staff understands how important it is for your company to maximize efficiencies so that you can continue to grow. We also know that you need a partner that has your company’s best interests at heart and who will always be there.