The great thing about capitalism is that there is so much choice to make use of. Even in a niche market such as third party logistics, there are several types of business models to choose from. The four models in current design will allow you to pick only what your business needs- and not the fluff that it doesn’t.
Small businesses that need to expand do best with the standard 3PL model. This model is your basic starter package in the logistics industry. You get all the transportation and storage help your business needs, plus a few extras here and there to simplify management. While nothing complex, the standard model has everything you need to expand.
Next up we have the service developer- which will essentially do everything that the standard third party logistics company does, yet it offers services that other providers don’t. This could include more options in packaging, better security options, or really any service that has been developed to cast a shadow on their competition. While more expensive, they also have better features your business can use.
Further up the scale we have the customer adapter model. This mode of third party logistics allows the company to handle all of your logistics operations, and also almost completely integrate with your business. While the 3PL company won’t fully integrate, it may feel like they have done so. Such models don’t allow a 3PL company to take on many clients, so these can be harder to find than others.
The four models explained aren’t hard to look at and determine where your business would fit. A large business with plenty of room for expansion is best suited for the customer developer model, while other businesses can easily be satisfied with a standard model or something similar. The best course of action at this point is to come into contact with several 3PL services to see when you can speak to them about a free consultation service.
At the extreme end of the spectrum we have the customer developer model. This model allows a 3PL business to completely integrate with your own business. It will be much like you have just hired a whole new set of employees that work directly with you to develop your business. This model of 3PL services is extremely limited in the number of clients it can sign on- so these are the most rare of all.
Closing Comments
Third party logistics services can greatly increase your efficiency as a business- just be sure you know which model you need specifically. A 3PL company should be able to provide free consultation to see what they can do for you, and at a price to meet your budget.
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