3PL Introduction

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BFC focused efforts into areas: 3PL Fulfillment Solutions.

Third Party Logistics (3PL) is one of the fastest growing industries in the world. As more and more companies focus on eCommerce and supply chains optimization, there is a lot of confusion between different logistic models, like 3PL vs. 4PL, and how that can impact your bottom line.

Here is a simple explanation between the different logistic models.

1PL (1st Party Logistics) – Manufacturers or Producers utilize their own resources to take product from their facility and deliver it directly to the marketplace. Imagine a farmer growing their own produce and then selling that produce out of their truck at a farmers’ market. There is only “one” touchpoint in the supply chain.

2PL (2nd Party Logistics) – Depending on the size of the organization, Manufacturers or Produce can utilize different 2PL options. This includes either inbound services (raw materials) or outbound services (finished products). One of the best examples is companies using USPS, UPS, or FedEx to delivery their products to a customer. BFC utilize 2PL to drop ship our products to customers.

3PL (3rd Party Logistics) – This model utilizes a 3rd party that adds value services to the supply chain. Manufacturers send their products directly to the 3PL partner for storage, pick & pack, fulfillment services, inventory management, and kitting. In these situations, companies lack the investment and infrastructure to keep up with customer demand. A 3PL partner can take on the heavy lifting to ensure products get to market and meet customer expectations.

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4PL (4th Party Logistics) – These types of providers are considered more of a supply chain integrator or Lead Logistics Partner (LLP). A 4PL manages and integrates the entire supply chain for an organization. This might include managing multiple 3PL partners (inbound/outbound) that are focused on optimizing the entire supply chain. The ultimate goal is to coordinate the end-to-end data gathering to provide real-time information to increase the supply chain visibility.

5PL (5th Party Logistics) – These providers focus on big data, leveraging technology, and Artificial Intelligence (AI) to transform a supply chain to a supply network. This is where you see companies like Amazon sourcing product, warehousing, robotic pick & pack, and last mile delivery of their products. They are focused on controlling every stage of the supply chain and creating the most value for the company.

3PL (third party logistics) is one of the fastest growing areas at BFC. We have had great success in providing fulfillment for Welcome Kits in many industries.

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