When we consider analytics of the companies ruling specific industries – retail, technology, or logistics, their great operations seem to be well-oiled machines running entirely under their own roof. However, you might be surprised to learn that the majority of these giants, which look like they manage their supply chain entirely on their own, use third-party logistics (3PL) to handle critical supply chain management operations.
In this article, let’s look at some of the companies that use 3PL services, some of which you might be aware of but never realize that they outsourced a core business function. So here are more prominent 3PL services, big rollers that will surprise you.
Apple is all about futuristic-looking products, cutting-edge technology, and premium goods such as the iPhone, MacBook, or AirPods. Do you already know that behind these beautiful and highly tuned retail spaces and extremely professional product launches lies a complex logistics process that is not managed by Apple itself?
Much of the distribution and warehousing is actually outsourced to 3PL services by Apple. Logistics providers are business associates of Apple to guarantee timely delivery of their products across the global market. Their third-party logistics providers assist them in managing diverse global demand, especially during the time of product launches when demands are exceptionally high. This leaves a lot of room for Apple to focus on creating new products and services while outsourcing the technicality of supply chain management.
Not only small companies but even giant like Amazon, with their formidable supply chain and Amazon’s own fulfillment services, still rely on 3PL for some parts of their business. Despite the fact that Amazon delivers a large part of its products on its own, especially through FBA (Fulfillment by Amazon), it collaborates with 3PL companies to move merchandise and access spaces that the company’s supply chain cannot reach optimally.
The firm especially uses third-party logistics for final mile delivery in the more rural areas, storage, and overseas delivery. This is what makes it possible for them to provide their signature two-day delivery for millions of products, even when its internal capabilities are under pressure.
Nike, a leading name in the line of sportswear, footwear, and apparel, also offers 3PL services. Nike, being an international company that deals with products in more than 190 countries, has a complex logistical need. Due to the growing customer base and to control the circulation of its products, Nike hires third-party logistics companies in the areas of inventory management, distribution, and transport systems.
Nike’s 3PL partners assist in simplifying the supply chain and helping products get to retailers and then to consumers. Nike also benefits from outsourcing time-sensitive logistic functions by delivering the 3PL services that enable Nike to focus on marketing, designing, and building brand awareness.
IKEA is all about efficiency, and anyone who has had to construct a piece of furniture from this company knows that efficiency is one of their most prominent values. Nonetheless, when it comes to the distribution of flat-packed products for storage and transport of a large amount of furniture, IKEA seeks help from 3PL services. IKEA has a complex supply chain operating at the international level, where, in some parts of the world, the company uses franchise logistics companies to deliver goods effectively.
From sourcing to distribution and transportation, even the in-store supply chain management, 3PL partners of IKEA ensure that you are able to buy that new bookshelf and have it delivered to your doorstep. Without these logistics providers, IKEA would have a hard time living up to its marketing of good and affordable furniture to the public.
The truth is that a number of companies that use 3PL have a lot of opportunities to provide their customers with extra options. Whether it is Apple and Amazon or Nike and Coca-Cola, outsourcing logistics to third-party providers enables such companies to sustain that competitiveness and streamline their supply chain.