Have you wondered what is the difference between 1PL, 2PL and 3PL provider? These jargons are used many times and it may sound daunting. However, these providers provide a way for companies to optimise their supply chain management from sourcing of raw materials to last mile delivery to their customers. This is possible through the modernisation and use of technology in supply chain. Depending on your needs, these logistics services could be tailor made to fit your business requirements. As such it is important for us to understand the concepts of 1PL, 2PL and 3PL.

First Party Logistics (1PL)

First party logistics (1PL) is a logistics service where a company handles its own logistics operations without outsourcing any supply chain functions. All logistics tasks are handled internally. In the case of 1PL, a company as a manufacturer/supplier/retailer manages its logistics operation independently. This logistics model is typically used by small companies or those with low shipping volume. The advantages of 1PL include cost savings, full control over the logistics process for faster decision making, and flexibility in managing logistics. However, the disadvantage of 1PL is a company needs to maintain all logistics tasks which require large investment and effort to optimise routes.

Second Party Logistics (2PL)

Second party logistics (2PL) focuses on providing transportation vehicles, equipment and services to other companies in the supply chain. This occurs when transport and storage activities are outsourced to an external logistics service provider. For example, the manufacturer contracts trucking service companies to transport goods from the factory to the distribution center. Also, 2PL providers manage their own warehouse and a fleet of vehicles. The service offered to clients are limited to specific part of the supply chain. 2PL is typically utilised by large companies that manage significant amounts of their own inventory.

Third Party Logistics (3PL)

Third-party logistics (3PL) providers offer a variety of services encompassing inventory management, order fulfillment, warehousing and transportation. This logistic type involves outsourcing logistics operations and supply chain management to a third-party provider. 3PL services help businesses save time, cut costs and streamline their supply chains. It is especially beneficial for businesses with complex supply chains. For instance, manufacturers may utilise 3PL services for distribution and inventory management. At the same time, e-commerce might depend on 3PL providers for warehousing, packing and shipping.

Selecting the right logistics service depends on your company’s location, size, and supply chain complexity. 3PL is suitable for businesses looking for a comprehensive outsourcing solution.

How ACL Australia can help you in 3PL services

Ready to outsource parts of your supply chain to a 3PL provider? ACL Australia is ready to help you achieve your requirements. Some of the services we provide includes:

1. Warehousing
   With a warehouse space of 14,000m2, we are ready to handle your storage needs.

2. Pick and Pack solution
   Storing your goods in our warehouse require careful handling and storage. At the same time, we help to pick and pack based on your order.

3. eCommerce
   Running an ecommerce business is not easy. Outsource the tedious tasks of order management and fulfilment to us. With our integration options, rest assured that your orders are received timely in our warehouse.

4. Transportation
   No matter what your transport requirement is, we have solutions to help you transport your cargo across Australia and the world.