Five Types of 3PL Providers and How They Differ

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Introduction 

3PL companies are external providers that provide full or partial logistics services to numerous e-commerce companies and Shopify stores. The order fulfillment services provided by 3PL companies generally include transportation, warehouse management, pick and pack, and distribution. In this process, the 3PL companies is neither a producer nor a seller but a third-party company that provides services in the entire logistics process from production to sales. It generally does not own goods but only includes warehousing and distribution for customers. In today’s world of economic globalization and informatization, especially after China enters into WTO, more foreign companies will cooperate with China. At the same time, more and more international 3PL companies will also join the global order fulfillment service market. 

What is 3PL?

The number of services that logistics providers offer has increased over time, particularly with the rise in eCommerce. Your business will determine which type you select. A standard 3PL companies is the best choice for eCommerce businesses that only require basic logistics. These companies provide minimal services, such as storage and shipping of products. It’s usually very affordable because their services start and end simultaneously.3PL service providers offer more than just standard shipping and storage. However, they also provide IT infrastructure and management. They offer their clients safety and reliability value-adds like shipment tracking and compliance management. They offer safety and reliability benefits to their clients, such as shipment tracking and compliance management.

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Clients have access to technology such as a transport management system that allows them visibility into the process and tailor shipments. However, they can also remain hands-off if necessary.3PL customer developers can take complete control of a company’s logistics operations at their client’s request. They’re their logistics department. Due to the amount of work, staff, and responsibility required to “run the show,” 3PL customer developers can be pretty expensive.

Many types of 3pl logistics providers

1. 3PL intra-enterprise logistics model

Generally speaking, large enterprises usually have a material department. However, a transportation department or a distribution department of a logistics department is responsible for procuring raw materials and transporting finished products delivery. Some businesses may have their fleets, while others use independent transport companies. When the modern logistics management theory appeared on the stage, these enterprises paid full attention. With the development of information technology, they have established a developed distribution network and information system. They have become the logistics pioneers of the industry with a distribution speed far higher than the industry level. Seeing their own logistics advantages, these companies split their logistics department from the parent company into independent 3PL companies.

China fulfillment center is a typical example. It is one of the largest 3PL companies in China. It has three super large warehouses in Shenzhen, which are responsible for fulfilling e-commerce orders. Through the cooperation of many international express companies, they are incorporated into their own logistics information network. China CFC guarantees the safe delivery of your e-commerce orders. China CFC realizes the potential of serving other companies with its order fulfillment, constantly optimizing the order fulfillment process within the China warehouse. It strives to provide the best order fulfillment services for more companies.

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2. 3PL distribution mode

The 3PL distribution model originated from a logistics transportation company. Still, due to the introduction of the theory of logistics management, it shed its initial transportation shell earlier and evolved into a logistics management company that provides distribution services. Its expertise lies in having mature technology, an advanced information system, and a professional logistics management team. When it enters a new market or obtains a new logistics outsourcing contract, it often only injects its experienced team and information system to carry out distribution operations on the client’s inherent facilities and hardware equipment platform. It will set up a subsidiary for each client enterprise to serve it exclusively.

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China fulfillment center is the leader of this model. It has been established for more than ten years, mainly engaged in order fulfillment, warehousing, and transportation services. This 3PL distribution model has been a turning point in warehousing fulfillment in recent years. It has begun to transform into a 3PL companies based on order fulfillment, which mainly provides customers with transportation, warehousing, distribution, and warehouse management. When China CFC entered the global market, it was already a reasonably mature 3PL logistics management company. We provide order fulfillment services for a variety of industries around the world.

3. 3PL transport business model

Most of the 3PL companies transportation business models are large traditional transportation companies with a long history. After years of development, they have very mature transportation technology, a broad transportation network, and a deep understanding of customers’ logistics needs. They naturally increase the facilities and technologies of related logistics services as the logistics needs of customers increase. Although order fulfillment services still dominate, the provision of logistics services has gradually become one of its strategies to keep old customers and attract new ones while adding a new source of profit for 3PL companies.

In the past, 3PL logistics companies only provided a single mode of transportation services to transport goods from one place to another. For a customer to complete a delivery, They must use several transportation companies and warehousing companies with different 3PL companies modes. There are now a few transportation companies one step ahead and becoming a full 3PL companies by acquiring or investing in warehousing and distribution companies and other modes of transportation.

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3PL companies CFC has been established for more than ten years. China CFC has many international distribution centers in Shenzhen and has cooperative international logistics partners worldwide. The logistics distribution network and advanced distribution technology formed within China CFC enable CFC to have logistics Manage, a team of technical expertise, and a solid customer base.

As China CFC has an extensive 3PL transportation network, CFC has become a well-known third-party logistics provider in China. It is responsible for transporting goods from the Shenzhen warehouse worldwide. You store your goods in CFC’s Shenzhen warehouse. When you have an order that needs to be processed, our warehouse staff will sort it and then deliver it to global customers.

4. 3PL freight forwarding and customs declaration mode

The 3PL freight forwarding and customs declaration mode usually does not have transportation equipment and only acts as an intermediary to provide customers with more favorable rates and customs declaration services. Still, when a freight forwarding company develops into a large multinational company, its substantial capital is sufficient to support it from Large acquisition costs for freight forwarders to transform into 3PL companies.

China CFC is a China 3PL companies with over ten years of history. Therefore, it provides:

  • Import and export processes.
  • Transportation.
  • Warehousing and distribution.
  • Inventory management in the global market.
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It has many logistics partners in various countries around the world. When the customer’s demand for whole-process logistics gradually expands, China CFC continues to grow and optimize the scale of internal warehousing to comply with this trend.

They were completing product fulfillment for international markets. When more manufacturing companies intend to enter their products into the global market, it is difficult for many 3pl companies to cover the needs of the worldwide customer base. Still, CFC can ensure timely delivery, and many companies choose China CFC to provide logistics services for them.

5. 3PL refrigerated storage mode

Most warehousing companies of 3PL companies are acquired by transportation companies in the development of the logistics market and become a link in the provision of full logistics services by transportation companies. However, refrigerated warehousing companies can buck the market and become the dominant player in the refrigerated supply chain, working with upstream and downstream transportation companies to provide customers with whole-process cold chain logistics services.

With the accelerated pace of modern life, people spend less and less time in the kitchen, and various semi-finished frozen foods have emerged as the times require. This 3PL cpmpanies mode provides convenience for people’s life and saves time. Half of the frozen food varieties in North American supermarkets didn’t exist ten years ago. Purchasing refrigerated trucks is not difficult, but establishing a refrigerated distribution center and a management team with expertise in cold chain logistics is not an easy task. In this context, refrigerated storage companies quickly dominated the market and transformed into third-party complex chain logistics companies.

Headquartered in Shenzhen, China, CFC has been established for ten years. China CFC has rapidly emerged as a 3PL companies in recent years, providing high-quality logistics services to numerous Shopify stores. China CFC is responsible for transporting goods from suppliers to its warehouse distribution center for distribution. Picked and delivered to every customer in the world.

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Conclusion

Although 3PL companies have experienced different development histories, they all keep up with the market’s pulse and constantly adjust their strategies as the market changes. They develop comprehensive logistics capabilities through acquisitions and alliances based on their management expertise, unique facilities, or substantial capital. If you need a 3PL companies, I suggest you consider China CFC. China CFC has a professional order fulfillment team, which will play a vital role in providing customers with first-class warehouse fulfillment services. CFC Fulfillment Center has excellent warehousing equipment and order fulfillment process inside. China CFC will also be more active participation in international order fulfillment services, which will expand your business more globally.