Third Party Logistics Key Terms
Learn the basics of third party logistics terminology
Third party logistics (3PL) can be a helpful line of business for your shipping needs. Turning your freight over to the hands of experts can save you time and money, but knowing how to discuss business with the right terminology is the first step.Third party logistics key terms can include different styles of 3PL as well as various phrases used within the industry. Familiarizing yourself with the words and phrases will help you the next time you speak with your provider and/or your other industry contacts.
Service developer
Customer adapter
The customer adapter 3PL type is specifically requested by the client to enhance logistics capabilities. This type of 3PL improves logistics without developing a new service.Customer developer
Customer developer 3PL is the highest level of integration with the customer. The 3PL company takes over complete control over the entire logistics function. Providers of this nature have fewer customers and provide more in-depth service.Non-asset based logistics provider (4PL)
Non-asset based providers, also called 4PL or fourth party logistics, do not own physical freight distribution assets, like trucks, pallets, or storage facilities. Instead they offer services such as consultation on packaging and transportation, tracking, freight quoting, auditing, financial settlement, customer service and more.On-demand transportation
On-demand transportation is a term used to describe brokerage, ad-hoc and "flyer" 3PL services. It allows providers to offer specific solutions to client supply chain needs. On-demand transportation prices can vary greatly from standard published rates.Next flight out
Next flight out (NFO), also referred to as best flight out when on a commercial airline, refers to modes of transport in the on-demand model of 3PL.Copyright © 2013 Business.com, Inc. All Rights Reserved.
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