• Katherine Perelas

What is Third Party Logistics (3PL) & Why Do They Exist?

Updated: Dec 21, 2020

Defining what a 3PL is and offering a better solution.

What 3PLs Do

Simply defined, Third-party logistics (3PL) software manages outsource supply chain activities such as transportation and warehousing. Companies can work with 3PLs to manage warehouses and trucks for them. More specifically, 3PLs can plan, schedule, and monitor supply chain operations on behalf of their customers. Customers should also have access to the system, which improves transparency in their supply chain. In other words, 3PLs help relieve work from these companies (carriers) and improve transparency for customers (shippers).

3PLs can, admittedly, do a lot of good things. They can can pull rates from several of the same freight carriers you already use at one time, they can make transportation easier, take charge of global shipping logistics, or can use information technology to manage various aspects of a business. Life working with a 3PL means additional expertise, saving time and money, and makes scaling operations more scalable

Life Before 3PLs

Before 3PLs existed, shippers might have had to manually enter the origination, destination, and freight shipping information on six different platforms. These shippers could devote several hours and hire trained employees to simply receive a rate quote.

An Even Better Solution

While 3PLs have found solutions for some problems that shippers face, they also have created unique problems for both carriers and shippers. MyCarrierTMS fixes these issues with a new model that takes all the benefits of a 3PL but connects shippers directly with their carriers. MyCarrierTMS is similar to Kayak of the travel industry where you can view multiple carrier quotes, rate, and book freight all from one easy-to-use website. Sign up here to ship your freight faster and easier today.

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