What Is 2PL Logistics?
According to the actual logistics undertaker, we refer to different logistics forms as different logistics parties. In this article, we will discuss what 2PL logistics is, and you can learn more about the advantages and disadvantages of 2PL. I also recommend options for simplifying the 2PL process for you.
What Is 2PL Logistics?
2PL (Second party logistics) Logistics refers to the logistics organized by buyers, sellers or distribution companies. The core business of these logistics organizations is to purchase and sell goods, so 2PL is also called buyer logistics. Whether it is a traditional distribution enterprise or a modern e-commerce retail enterprise, it also has a certain scale of logistics implementation of warehousing, transportation or distribution to undertake the logistics and transportation tasks of the enterprise.
Let’s take a t-shirt business as an example. Suppose one of your clients is Old Navy, a classic American clothing store. You need to ship the t-shirts in bulk to the Old Navy warehouse, so you contact the 2PL supplier and arrange for the supplier to ship the t-shirts. From there, Old Navy will pay the rest of the distribution costs as you hold out until the negotiation ends.
What Does A 2PL Provider Do?
1. Loading and Unloading Items
2PL Provider needs to pick up the goods at the warehouse and load them onto the truck. And provider need ensure that all items are loaded safely and accurately.
2. Transporting goods
Be aware of the mode of transport, the cargo on board and the destination of the goods.
What Are The Examples Of 2PL Logistics?
- Any freight forwarding company include shipping lines which operate the ships, airlines that operate the planes and hauling companies that operate vehicles.
- The emergence of “flash delivery” meets the segmentation scenarios of high timeliness and expanding sales regions. In these scenarios, customers are generally insensitive to price, but have very high requirements for service quality.
- The more typical ones are JD.com, Amazon, Cainiao, and Suning. Representative companies in second-party logistics, such as Jingdong Logistics. After JD.com places an order from a production enterprise, JD.com organizes its own vehicle source to pick up the goods, and then deliver them to the No. 1 warehouse in Asia.
- Then there’s the Woodbridge, NJ-based trucking company, a logistics service provider to and from all over the world.
- Honest fulphilent offers 2PL logistics services with a wide range of contacts and freight forwarding partners that can send your goods by any means. Honest fulphilent will choose the most competitive price for you and can even handle all the customs clearance and documentation processes, taking all the hassle and complexity out of it for you. Feel free to contact us if you need anything.
What Are The Pros And Cons Of 2PL?
Is 2PL right for all organizations? It depends on the needs of different companies. That is, there are advantages and disadvantages of second party logistics.
1. The Pros Of 2PL
- Provide enterprises with strong competitiveness. Enterprises regard logistics service as an important capacity building, which can provide strong competitiveness for their own business.
- 2PL logistics can save a lot of money.
- Provide diversified choices for enterprises. 2PL logistics will provide different modes of transportation, which is flexible and convenient in outsourcing supply chain. Enterprises will also have more choices.
- Enterprises using 2PL providers can reduce complexity. It is very complicated for enterprises to arrange their own trucks. 2PL suppliers can solve this problem.
2. The Cons Of 2PL
- It is difficult for commercial enterprises themselves to build an effective logistics network.
- There is a risk of cargo transport delay. This happens because some companies do not comply with the contract. However, a backup system can be established to solve this problem.
- The scope of application is small. 2PL logistics is applicable to the external management of a part of the supply chain.
How To Simplify The 2PL Process?
Freight and logistics are extremely complex areas of your e-commerce operations and can often require you to spend a lot of time bouncing metrics and data between suppliers and shipping agents to get quotes, so in order to save time and simplify the process, you need to find a professional personnel responsible.
Turn to Honest FulPhilment and we can help you simplify the process. We will give you a quote and give you different options, all you need to do is tell us your needs and supplier contact details.We will explain them in an easy-to-understand manner so that you can make an informed and well-thought-out decision.
In short, the second party logistics is the enterprise’s own logistics system, which is a logistics mode between a completely independent logistics mode and a complete outsourcing mode of the enterprise. While enterprises have greater autonomy, they are not completely independent. Establishing an efficient logistics system is the source of profit for an enterprise, so it is very important to seek professional logistics.
If you want to know more about 2PL logistics, I hope you will contact us – Honest FulPhilment. We will offer you a full range of services.
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