Logistics Service Providers

This chapter covers two types of information relating to logistics service providers: overviews outsourced logistics services industry, more commonly referred to as "third party logistics (3PL)" and provides significant detail concerning how the 3PL industry serves the needs of its customers. While the emergence and growth of the 3PL industry was recognized as a major phenomenon in the 1990s, thoughts differ as to how to best define this type of logistics provider, and what services might be included. Although most 3PL firms promote themselves as providers of a comprehensive range of logistics services, it is useful to categorize them in one of several ways. The 3PL users also expect 3PL providers to enhance offerings by bundling these service offerings and by expanding their capabilities further up the supply chain. The need for capable data and process management, coupled with the availability of low-cost standard information, is a high priority for both 3PL users and providers.