If you happen to have a business in LA for which you require a warehouse or warehouse related services, you must have known a Los Angeles Contract Warehouse which also allege to offer Los Angeles 3PL. 3PL or third party logistic providers provide warehousing, cross docking, freight forwarding, inventory management and transportation services, or other service included in the supply chain management tasks.
The services they offer can be customized or scaled according to the market conditions or clients demand. Having a third party logistics enables the company to stay competitive without having to buy many properties and materials which reduces a lot of operational cost for the client company.
As Information technology brought on a huge up shot in globalization, the concept of third party logistics evolved in the 1980’s. You must have heard of a lot of third party logistic companies such freight forwarders and courier companies, and there are few which incorporate subcontracted logistics and transportation services. Most of these companies, such as DHL, UPL and TNT logistics emerged during this period.
Types
Third Party Logistics can be classified into four types:
• Firstly, the standard third party logistics provider. They are the third party logistic providers with very fundamental operations such as warehousing, pick and pack and also distribution.

• Service developers are based on a firm IT infrastructure. They also offer the customers with many value added services such as tracking, cross docking, specific packing or unique security system.

• Third type of 3PL are the customer adapters. They take care of all the firm’s logistic operations on the demand of their customers. They do not develop or alter any operation or function.

• Customer developers take complete control of the company’s logistic functions. They integrate themselves into the company and might also alter the procedure if needed.
Usage
Third party logistic services or application are essentially needed for firms which may be too large or have a wide complex network. So, logistics doesn’t have to be the primary focus or proficiency of many firms. In addition, these services aren’t needed at the time of getting hold of of some other company or at the launch of a new product.
Advantages
Third party Logistics can give several advantages to a company in many different ways. A company can concentrate better on its other main objectives other than the logistics, therefore strengthening its main competencies. Furthermore, the logistics offered by a third party may cost lesser as the resources are not needed to be bought or rent. Plus, a third party logistic provider may provide more professional logistic services to improve the firm’s competitiveness.
Disadvantages
Despite their numerous advantages, third person logistics may not be capable to do all the things a client might think it would. There exist some limitations and some disadvantages as well. One of them is that the company itself loses all or most of the authority over the logistics functions. Yet, one more problem is that a change of opinion between the firm and the third party logistics provider may occur, thus hurting the whole logistic process and function.