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

A service developer 3PL provider will give customers advanced value-added services by having a strong IT foundation and a focus on the big picture. These services include tracking and tracing goods, cross-docking, specific packaging and providing security systems.
Try: Find out about 3PL service developer services from Cybertration.

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.
Try: Learn about customer adapter 3PL from Beyond Giving.

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.
Try: Check out the information on customer developer 3PL from Midwest Third Party Logistics.

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.
Try: Read more about non-asset based logistics providers from Dalor Logistics.

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.
Try: Find out how MercuryGate International has created a global on-demand system.

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.
Try: Power Freight Systems offers more details about NFO services.

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