Third-party logistics, or 3PL, refers to a type of distribution service that is used in supply chain management to help with a business’s connection between manufacturers and wholesalers. They are hired to complete part or all of the logistics process, whether it be warehousing, transportation, or distribution. The trick to hiring the right 3PL company for your particular needs is to gain a better understanding of the multiple types of 3PL providers and what each focuses on to help your business. 

3 Different Types of 3PL Providers You Should Be Familiar With

1. Transportation

As the name suggests, this provider handles transportation between one location and the next—or put more simply, shipping. This type of 3PL service is excellent for e-commerce businesses, as they help to move inventory seamlessly from retailer to consumer. They are responsible for the shipping method and maintaining a tight schedule so that their clients receive each shipment on time. 

2. Warehouse & Distribution

A warehouse and distribution 3PL company focuses mainly on storage, shipment, and returns. This is by far the most common type of 3PL provider, as they incorporate various services that a single company can utilize to complete their orders on a day-to-day basis. Using inventory management tools and software, they can store your inventory in a large warehouse, locate the items as needed for shipment, and package and distribute them according to schedule. Plus, they’ll update inventory levels and relay the information back to you so that you can keep your customers highly informed. 

3. Information-Based

Larger e-commerce companies are well known to use information-based 3PL providers. They take stock of all of your financial records, logistics network, cost accounting, and bookkeeping to help streamline all of your information into one accessible portal. This information is helpful for larger companies to see where their business ranks according to recent market studies and to strategize more efficiently with future shipments. 

If you’re in the market for a 3PL company you can trust in Waipahu, HI, look no further than Hawaii Transfer Company, LTD. Since 1931, they have retained the title of the largest transportation fleet in the state. Invested in providing quality service and convenient access for any company, they go the extra mile to make sure they meet the high demands of their customers. For more information on their services, visit them online or call at (808) 677-3111.