Session2 Review

The 3PL:
A 3PL (Third-Party Logistics) is a partner or service that helps ecommerce
merchants manage their supply chain. Common 3PL services include
warehouse and inventory management, order fulfillment, shipping
coordination, retail distribution, exchanges, and returns.

The three types of 3PL:

1 Distribution-Based 3PL Services
A distribution-based 3PL provider is tasked with processing,
fulfillment, and shipping of orders. 
Typically, a fulfillment center receives inventory from the
company’s supplier or manufacturer and stores it until an order is
placed. When that time comes, they pick it, pack it, and prepare it
for shipping. Common 3PL services include: 

2 Financial-Based 3PL 
Not all 3PLs are directly involved with supply chain
management.  
For instance, financial-based 3PLs, specialize in the fiscal side of
ecommerce logistics. They act as an expanded finance and
logistics accounting department to help a business optimize
shipping costs, negotiate contracts, and implement value-add
solutions. 
Financial-based 3PL services are more analytical. Their chief goal
is to optimize your supply chain logistics and shipping operation—
it’s about reducing shipping costs and expediting transit times.  
3 Transportation-Based 3PL  
Transportation-based 3PLs primarily focus on shuttling goods
from one location to another. For example, they may move
products or raw materials from a factory to a warehouse. 

The three modes of transportation are:

1. Parcel transportation carriers like USPS, UPS, and FedEx
2. Same-day delivery via local courier services 
3. Transportation marketplaces