The great thing about capitalism is that there is so much choice to make use of. Even in a niche market such as third party logistics, there are several types of business models to choose from. The four models in current design will allow you to pick only what your business needs- and not the fluff that it doesn’t.

The most basic of all third party logistics companies will offer the average service of handling your transportation needs, warehouse needs, and inventory checking. This is exactly what you were looking for in the beginning- but note that the 3PL company won’t do much more than this at the standard level. This model is best for small businesses.

Next up we have the service developer- which will essentially do everything that the standard third party logistics company does, yet it offers services that other providers don’t. This could include more options in packaging, better security options, or really any service that has been developed to cast a shadow on their competition. While more expensive, they also have better features your business can use.

Further up the scale we have the customer adapter model. This mode of third party logistics allows the company to handle all of your logistics operations, and also almost completely integrate with your business. While the 3PL company won’t fully integrate, it may feel like they have done so. Such models don’t allow a 3PL company to take on many clients, so these can be harder to find than others.

The size of your business and your level expansion is what you should look at when you are determining what model you want to go for. Most of the time you can safely go with the standard model of 3PL businesses and be perfectly happy. Only when your business has outgrown its shell, and doesn’t look like it will cease any time soon, should you consider the more personalized services. A consultation is always a good idea if you are confused.

At the extreme end of the spectrum we have the customer developer model. This model allows a 3PL business to completely integrate with your own business. It will be much like you have just hired a whole new set of employees that work directly with you to develop your business. This model of 3PL services is extremely limited in the number of clients it can sign on- so these are the most rare of all.

Final Thoughts

Third party logistics services can greatly increase your efficiency as a business- just be sure you know which model you need specifically. A 3PL company should be able to provide free consultation to see what they can do for you, and at a price to meet your budget.

Learn more about third party logistics provider and fulfillment center Missouri.