When an organization makes use of third party business to outsource its logistics needs, it is termed as Third Party Logistics or 3PL Logistics.
Not all businesses can afford to have their own supply chain management, hence they outsource their logistics requirements. With 3PL, businesses can avail either single service or multiple services depending on their unique needs. Some of the services that 3PLs provide include:
- Reverse logistics
- Inventory management
- Final distribution
- Labeling and packaging
Advantages of a 3PL :
- Saving time and money
Outsourcing logistics needs would save a lot of efforts, time and most importantly money. One does not need to maintain a warehouse, transportation and technology to drive the needs. One can fully focus on the products and services that he offers rather than having a divided focus on the products and the pain of logistics.
One doesn’t have to worry about labor and transportation with a 3PL. Seasonal businesses do not need to maintain warehouses, permanent labor costs or other overhead costs to keep the in-house supply active. They do not need to consider the ups and downs of the industry in terms of logistics needs.
Third party logistics providers have a vast reach and a strong network that is more beneficial as compared to any in-house supply chain management. There are many resources that are unavailable in-house supply chain and by using intense resource network of a 3PL, overhead charges can be cut.
Disadvantages of a 3PL :
- Communication issues
The seller has no control over logistics if getting it outsourced. Communication between the seller and logistics company is vital else deliveries can become a failure. Since two different divisions are involved in the process, communication might become a problem at times.
- Reverse logistics
Handling the returns or exchange of products in more difficult for e-commerce as compared to traditional retail business as when it comes to rely upon third party logistics, one doesn’t have much control on them and hence it can slow down warehouse operations and as a result delay the refunds too.
- No control
This is one of the biggest disadvantage of using a third party logistics company because one will be directly responsible for their actions as they are the face who represent your company at the customer’s end. Some 3PL companies also try to brand their employees as their client’s employees by various ways like putting their logos on the uniform.
United States is a vast country and has an excellent network of logistics. There are myriad companies that provide efficient services and assist businesses to reach their goals. Mentioned below is a list of top 25 3PL companies in the country:
1. Promptus, LLC
Promptus LLC is a B2B Third Party Logistics company that is based in South Florida in United States. The company offers freight forwarding, customs brokerage and distribution and other services across the globe. It uses advanced information technology and supports small and medium businesses with their logistics requirements. Some of the highlights of the company are that it provides 24*7 surveillance with safety measures for its warehousing facility, it ensures constant communication with clients to keep them updated, clients can live track their shipment and much more.
2. Georgia Bonded Warehouse
Georgia Bonded Warehouse is another third party logistics company, located in Georgia, US. It is a credible company in the country that provides services like specialized handling programs that are fully insured and bonded. Flex storage programs, standard lift, squeeze lift, short and long term services etc. Its services are provided to a lot of industries like automotive, manufacturing, construction material, appliance, R&D sector, aviation and more.
3. C.H Robinson
C.H Robinson offers freight transportation services and logistics solutions to companies of every scale whether big or small. They have 276 branches all across Europe, Asia, South America, North America and Australia while it’s headquarter is in Minnesota, US. It also offers sourcing services like buying, selling and marketing fresh produce through its network of growers and suppliers. They also do labeling and packaging, bulk shipping, domestic and international shipping and much more.
XPO Logistics are focused on delivering required supply chain solutions to their clients all across the world. They are highly dedicated to improving the digital freight marketplace, data science and their other services. They also invest a large amount on major technologies and in the robotics and automation. They were also ranked #1 Logistics company by Transportation Magazine in the year 2018.
UPS solutions is a popular company that has gained an excellent reputation for itself and is a trusted company in the country. It handles all the logistics needs of the clients and is a one-stop-shop for them. The company is ranked second in the’ Top 50 logistics companies’ by Transportation Logic Magazine. The company had net revenue of $12 billion dollars at the end of the year 2017 and claimed a profit of $1.1 billion in the same year.
Expeditors have a global presence with its headquarter in Seattle. It has a vast network of offices all across the world that are linked through an integrated information management system. Services offered by the company include forwarding of air and ocean freight, customs brokerage, vendor consolidation, order management customized logistics solutions and much more.
7. J.B Hunt Transport Services
J.B Hunt has diverse customer base that are provided with excellent services by the company. Services by J.B Hunt include transporting full truckload freight, container and trailer transportation, customized freight, and much more. They offer their services to industries like Agriculture, Construction, Manufacturing, Medical, Retail etc. they have expertise in paring the right load to the right carrier for optimized efficiency and cost reduction.
8. Hub Group
Hub group is another excellent third-party logistics company in the United States. It has its headquarter in Illinois and was founded in 1971. Hub Group has been divided into two segments that re the mode transportation and Hub. Both the segments offer intermodal services, logistics services and truck brokerage service as well throughout the country including Canada and Mexico. The logistics part of the company works under the name Unyson.
9. Ryder Supply Chain
Ryder Supply Chain focuses on fleet optics, transportation and supply chain management for about a customer base of 50,000 customers. They have an excellent 99% on time delivery rate and have a stunning 44 million square feet of space for warehousing facilities. They appeared in Forbes as one of the America’s best employers for fourth year in a row in the year 2018. They make use of advanced technology like drones, autonomous sensors and more in their warehouses across the country.
FedEx is a renowned third party logistics company that offers solutions to small and large scale companies by taking care of their unique demands and personalizing services accordingly. It manages about 508,000 shipments on a daily basis and was recognized as the top 3PL company by Multichannel Merchant in 2018. FedEx has developed efficient returns technology and has made the process simpler.
11. Total Quality Logistics
Total Quality Logistics (TQL) is another renowned name in the third-party logistics industry. The company was founded by Ken Oaks in 1997 and has its headquarter in Union Township, Ohio. It offers services like B2B fulfillment, freight shipping, bulk shipping and more. It has over 3,800 employees working for it Transport Topics Magazine ranked TQL as the second largest freight brokerage firm in North America, in the year 2016reporting $445 million net revenue.
Headquartered in Chicago, in Illinois, Coyote Logistics was found in the year 2006. It is a popular third-party logistics company and has a good reputation in the market. It offers truckload services like dry van freight, temperature controlled freight and more. It also offers less-than-truckload freight, open-deck transportation and managed LTL solutions as well. Coyote Logistics has other services to offer as well like heavy hall, flatbed, carload rail and more.
13. Schneider Logistics
Schneider logistics is headquartered in Green Bay, Wisconsin in the United States. The company has gained good credibility over the years and is among the top third party logistics companies of the United States. It offers a wide portfolio of premiere truckload, intermodal and logistics solutions while providing its services in North America. It also offers Dry Van truckload solutions, dedicated solutions with 19 equipment configurations to ensure optimum safety of the freight and on time deliveries.
Transplace has its headquarter in Texas, United States and was founded in the year 2000. It offers a wide range of services like bulk shipping, labeling and packaging, freight shipping, customs management, picking and packing and more to industries including retail, manufacturing and chemical and helps manufacturers, retailers and distributors to optimize their supply chain operations.
15. Transportation Insight
Transportation Insight was founded in the year 1999 and is headquartered in the state of North Carolina in United States. It is a third party logistics provider, creating an end-to-end supply chain solutions and offers domestic transportation, international transportation and logistics and warehousing solutions. The company has its operating centers in Omaha, Bentonville, Atlanta, Georgia and other countries. It also has around fifty client support offices in the United States.
16. Echo Global Logistics
Headquartered in Chicago, Echo Global Logistics is a third party logistics company that was founded in the year 2005. The company has a vast network of a whopping 50,000 contract carriers and private fleets. It basically allows businesses to fulfill their logistics needs by connecting them to carriers who can assist them to transport their products safely and efficiently.
Landstar is headquartered Florida in the United States and was establishes in the year 1968. Landstar is a very reputed and credible name in the logistics industry and is among the top transportation services companies in the US. It provides services in the US, Canada, Mexico and other countries across the globe. The company has a whopping 1200 agents, 15,000 trailers and 49,000 capacity providers.
NFI provides fully integrated supply chain solutions. It is one of the renowned third party logistics company in the US and is headquarter in New Jersey. The company serves a number of customers from various industries across the globe and offers tailored solutions. It offers services like warehousing, dedicated transportation, intermodal brokerage, real estate services and more. The company has approximately 50 million square feet of warehouse space and owns 9,700 trailers and 4,000 tractors.
19. Creative Logistics Solution
Headquartered in West Haven, Connecticut in the United States, Creative Logistics Solution was established in the year 1997. They own about 10,000 square feet of warehouse that is secured and is fully sprinkled. They have a convenient location and a well managed facility that makes it a comfortable access for clients to their goods. They also possess a CT Food Warehouse License along with FDA registration.
20. William B. Meyer
William B. Meyer was established in the year 1915 and is headquartered in Connecticut in the United States. It provides advanced technologically driven features like surveillance monitoring, climate controlled storage computerized management of inventory and more. The company offers myriad services like flow distribution, cross docking, product kitting, labeling and packaging in-bound and out-bound order processing and more and are partners with renowned and established eminent carriers.
21. WestOne Logistics
WestOne Logistics is a popular name in the United States when it comes to third party logistics companies and is headquartered in Idaho. It offers a plethora of services like freight forwarding, product staging and holding, contract logistics, transportation and more. The Yellowstone warehouse facility is under WestOne and is a controlled environment facility. The warehouse is about 108,000 square feet in area and is fully sprinkled and secure and is also used for pallet and bulk storage.
22. Murphy Logistics
Murphy Logistics is one of the oldest third party logistics company in the United States and was established in the year 1904. It is headquartered in Kansas City, Missouri. The company has thirteen logistics campuses located across Minnesota and Missouri and offers services like bulk, rack and food grade storage. They have three warehouses in Kansas City to cater the needs of any scale of businesses. They also have expertise in other areas including fulfillment, transportation, pick and pack and more.
23. Mercury Logistics
Mercury Logistics was established in the year 1966 and has its headquarter in Kentucky in the United States. The company has about 300,000 square feet of warehouse space and possesses US Customs bonded and Transportation Security Administration certification. They also have climate controlled storage and are inventory alcohol licensee. They are well equipped with advanced security systems that are monitored vigorously by emergency authorities.
24. CCI Logistics
CCI Logistics is a renowned name in the United States and is headquartered in Connecticut. It was established in the year 1915 and has been serving with excellence ever since. It offers various services like pick and pack, forms and printing fulfillments, returns processing, freight auditing and more.
25. Verst Logistics
Headquartered in Kentucky in the United States, Verst Logistics is another well known third party logistics company and was founded in the year 1966. The company owns about 7,000,000 square feet of warehousing space and offers various solutions to different scales of businesses. It also offers numerous services like picking and packing, freight shipping, labeling and packaging and more.
Apart from the ones mentioned above, there are many other 3PL companies too that have made their name have gained good credibility over time. Listed below are 15 of them:
- Port Containers LLC
- The Kearney Companies
- NEPW Logistics
- Beltmann Integrated Logistics
- Overflo Logistics
- Bowman Logistics
- G&U Logistix
- Tighe Logistics Group
- List Logistics
- Hot Shots
- Logistics Buddy Transportation
- Oregon Transfer Co.
- Riverside Logistics
- Camrett Logistics
- Wow Logistics