The Types of Third-Party Logistic Providers You Should Know

May 07 2021 by adm_oom

As time passes, many things continue to change, and third-party logistics (3PL) are part of that. As a business owner who relies on them the most, you should, at least, know the different types of third-party logistics available in Malaysia. 

 

Knowing the differences between each type will help you determine which one suits your business needs the most. As such, your efforts and investment will not go to waste if you choose the right type of 3PL for your business. Plus, your customers would not have a hard time trusting and supporting your brand. 

 

To help your figure out which 3PL you need, read the rest of the article. Below are the types of third-party logistics you should know.

 

Four Types of Third-Party Logistics You Should Know

1. Standard 3PL Provider

From the word standard, this type of 3PL is the most common third-party logistics out there. You can use it to pick and pack your goods. 

 

Usually, a standard 3PL provider offers warehouse and logistics services at a lower rate. The reason behind it is that what they can do begins and ends there. You cannot rely on them other than that. 

 

2. 3PL Service Developer

Compared to standard 3PL providers, a 3PL service developer offers IT infrastructure and management. That means you can track and trace where your goods are using their system. 

 

With that in mind, you can rest assured that all of your products will be safe and sound. That applies to raw materials, finished products, and perishable items.

 

Some of these third-party logistics may also offer package selection and cross decking.  Here is the difference between the two:

 

  • Package Selection
    • An option that allows the client to choose which packaging to use other than the boring brown box.

 

  • Cross-Docking
    • A process that enables the client to transfer an item from one truck to another, with little to no storage required.

 

3. 3PL Customer Adapter

Unlike the first two, this type of 3PL can completely manage all the warehouse and logistics of a client. They can take over and run the entire logistic operations by themselves. Of course, only if their client permits them to do so. 

 

A 3PL customer adapter’s clients could also do it on their own since they will have access to the IT infrastructure and management that the 3PL uses. As such, they can modify the shipment as needed.

On the other hand, relying on this type of 3PL can be expensive since they offer various services, such as warehousing, ship management, tracking, tracing, cross-docking, lorry transport in Malaysia, and much more.

 

4. 3PL Customer Developer

Although there are only a few 3PL of this type, 3PL customer developers are often the largest you could ever find. The reason why there are only a few of them is that they give the most in-depth oversight. 

 

Most of the time, they merge with their client’s logistic management. By doing this, they will have overall control of everything. Fret not since they will provide their clients with regular data and matrix reports. As such, they could still monitor their warehouse and logistics.

 

Take note that if you want to rely on this type of 3PL, make sure you are ready to give them overall control of your logistic management.

 

3PL Services Through Hock Cheong

At Hock Cheong, since we have more than 90 years of experience as a third-party logistics provider, we do not want to box ourselves. As much as possible, we ought to discover possibilities as we serve our clients in more years to come. 

 

If you rely on our warehouse and logistics, there are the services we can offer and do for you. 

 

  • Door-to-Door Distribution
  • Warehousing & Fulfillment
  • Customised Logistics Solutions

 

You can read more about what we can offer and do for you here. In case you are curious to learn more about us, do not hesitate to leave us a message. You can send your inquiry through our email at enquiry@hockcheong.com.my, and let us address your concern right away!

 

Start Delivering with HC today!

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