" /> " />
+1 800 780 82PL
2PL LOGISTICS CONSULTANT
WHAT 2PL LOGISTICS CAN DO FOR YOU
A full blown Logistics Agency that can provide all the functions of a 3PL (procurement, storage and distribution and processes for each) as well as the ability to provide a customer with the outsourced financial, customer services and computer systems to support commerce.
Let me give you an example; Say I am an importer of bicycles. I maintain my own stock and warehouse as I move 10,000 units a year. However, by law (such as the Consumer Guarantees Act) I must carry spare parts to maintain my bicycles. Because my supply chain is set up to move entire bicycles, the parts side is not a core business (but one I must have) and is not profitable – often it is costly.
I would then approach a 2PL who would provide all the business functions I require for my spare parts at a fee that should at least break even, if not make this business unit profitable.
Our company then absorbs this business function into their warehouse facility and by leveraging their latest technologies (warehouse management, integrated ecommerce, ERP etc.) they are able to run my parts business profitably, allowing me to concentrate on core business and keeping on the right side of consumer law.
How 2PL Logistics could run your non-core business divisions more profitably than you is the same way that Coke can deliver can to your local store for 20 cents, they have an efficient supply chain and systems in place to optimize wherever possible. Moving 10,000 bicycles a year doesn’t justify a $1 million spend on a warehouse management system with ecommerce and a 100,000 square foot warehouse, however for a 4PL that cost is spread over 100 clients so it is economically viable. Amazon is the biggest example of this, offering complete services and over 17.5 million cDC space around the world.