3PL Australia
Managing logistics in-house can involve coordinating warehousing, transportation, freight and distribution at different stages of the supply chain. Third-party logistics (3PL) allows businesses to work with an external logistics provider for selected logistics activities.
Depending on the business requirements, a 3PL arrangement can include warehousing, distribution, transportation coordination and freight forwarding. The services required will depend on the type of goods, shipment volumes, destinations and overall supply chain structure.
Stockwells provides a range of logistics and freight services in Australia, including warehousing and distribution, freight forwarding, port transport, linehaul and supply chain consulting.
What Is Third Party Logistics?
Third-party logistics refers to outsourcing logistics activities to an external provider.
Instead of managing every part of the logistics process internally, a business can use a 3PL provider to handle specific functions. This can range from storing goods and coordinating distribution to arranging transportation and supporting freight forwarding requirements.
The scope of a 3PL service can vary considerably between businesses. Some may require warehousing and distribution, while others may need a combination of freight, storage and transportation services.
What Does a 3PL Provider Do?
| Logistics Function | What It May Include |
|---|---|
| Warehousing | Storage and handling of goods |
| Distribution | Coordinating the movement of goods to required destinations |
| Transportation | Organising or coordinating freight movements |
| Freight Forwarding | Arranging international movement of cargo |
| Supply Chain Support | Supporting logistics planning and coordination |
Not every business requires all of these services. The appropriate combination depends on the company’s supply chain and operational needs.
3PL Warehouse and Distribution Services
Warehousing is an important part of many third-party logistics arrangements.
A 3PL warehouse can provide businesses with an external location for storing and managing goods before they are distributed to their next destination.
Stockwells provides warehousing and distribution services as part of its broader logistics capabilities. Businesses can discuss their storage and distribution requirements with the Stockwells team to determine the appropriate arrangement.
3PL and Freight Forwarding
Third-party logistics and freight forwarding address different but connected areas of logistics.
Freight forwarding focuses on coordinating the movement of cargo, particularly for international shipments. 3PL can cover a broader range of logistics activities, including warehousing and distribution.
For businesses importing or exporting goods, these services may form part of the same supply chain.
For example:
Supplier → Freight Forwarding → Port Transport → Warehousing → Distribution
The exact process will depend on the business, cargo and logistics requirements.
3PL Logistics for Australian Businesses
Australian businesses can have different logistics requirements depending on what they sell, where their suppliers are located and where their customers are based.
Working with an external logistics provider can help businesses coordinate selected logistics activities rather than managing every function internally.
Factors that may need to be considered include:
- Type and volume of goods
- Storage requirements
- Distribution locations
- Domestic or international freight
- Transportation requirements
- Import and export requirements
- Existing supply chain arrangements
A suitable logistics model should be based on the actual requirements of the business.
Benefits of Using a 3PL Provider
The reasons businesses use third-party logistics can vary. For some companies, outsourcing selected logistics functions can make it easier to coordinate operations as their requirements change.
Potential benefits can include:
- Access to external logistics capabilities
- Centralised coordination of selected logistics activities
- Warehousing and distribution support
- Freight forwarding coordination
- Transportation support
- Supply chain planning assistance
- Reduced need to manage every logistics function internally
The benefits and scope of a 3PL arrangement depend on the services included in the agreement.
3PL Services and Supply Chain Management
3PL can form one part of a wider supply chain strategy.
Businesses may combine warehousing, transportation, freight forwarding and distribution to create a logistics process that matches their operational requirements.
Stockwells also provides supply chain consulting, supporting businesses with logistics and supply chain requirements alongside its freight and distribution capabilities.
Stockwells Logistics Capabilities
Stockwells is an Australian family-owned freight forwarding specialist that has been operating since 1971.
Its logistics and freight capabilities include:
- Freight forwarding
- Customs brokerage
- Port transport
- Warehousing and distribution
- Project cargo management
- Supply chain consulting
- Linehaul
These services cover different stages of freight and logistics coordination for businesses operating in Australia and internationally
Frequently Asked Questions. (FAQS)
01 What does 3PL mean?
3PL stands for Third-Party Logistics. It means using an external logistics provider to manage selected logistics or supply chain activities.
02 What services are included in 3PL?
Depending on the provider, 3PL can include warehousing, distribution, transportation coordination, freight forwarding and other logistics activities.
03 Is 3PL the same as freight forwarding?
Not exactly. Freight forwarding primarily involves coordinating the movement of cargo, while 3PL can cover a broader range of logistics functions such as warehousing and distribution.
What is a 3PL warehouse?
A 3PL warehouse is a storage facility operated or managed by a third-party logistics provider for businesses that outsource part of their warehousing requirements.
Looking for Third Party Logistics Support in Australia?
Every business has different warehousing, freight and distribution requirements. Stockwells can discuss your logistics needs and the services available across its freight forwarding, warehousing, distribution and supply chain capabilities