Second Party Logistics (2PL) DefinitionPosted in Logistics Parties - 7 Jan 2019, 5:39 PM
Second party logistics (2PL) entity is a type of company that providing an array of modes of transportation for a delivery purpose. If the first party logistics or 1PL company goes with its logistics operation, produces goods, and stores them, the 2PL provider has its role. The entity serves an asset-based carrier. The job—as well as the system that it has to offer—is different from the rests of logistics parties. For further explanation, have a read on this.
Second Party Logistics Service Provider in Details
Second party logistics service provider better recognized as 2PL typically is a company that offers a range of transport services. The client that the company commonly cooperates includes producer, exporter, and manufactures of certain goods that outsource the transport services from other parties.
This type of logistics provider arguably has its means of transportation such as trucks, ships, and even airlines. Aside from providing the transport service, this company also offers the lease. It means that other manufacturers can rent the vehicles based on a specified agreement regarding duration and payout.
The Main Benefit of Taking Full Advantage of Second Party Logistics Company
It’s such a good thing when it comes to running personal logistics operation like delivering some products directly to the consumers with personal carriers. However, it’s somehow a bit risky especially when private transportation doesn’t meet the regular standard. Hence, relying on the second party logistics service provider is important.
This company completely guarantees that the delivery service—transferring from one place to another—is well performed. Unfortunately, it doesn’t offer a logistics solution that’s fully integrated. Compared to the provider of first party logistics, you might find that this service offered is costing an arm and a leg yet it’s worth it.
Some Samples of Transport Companies
Depending on the type of goods delivered to a particular destination, you can opt for your own transport companies. Overall, transport service providers are found to be diverse. For long distance, crossing the international borders, maritime and air transports are pretty common. FedEx, for instance, includes in this category. Even the company has its airline to deliver the goods. Another sample of second party logistics company is nothing else but Maersk. To cut a long story short, the 2PL service provider can be identified as an entity that focuses on providing carriers from ship to air-based transport. With this, the product distribution of a manufacturer can be successfully delivered.