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Transportation Management with SAP TM 9.0 by Tejkumar Pandit, Jayant Daithankar

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CHAPTER 1

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Transportation Industry Overview: 3PL Perspective

In this chapter, we will discuss the following:

  • How the third-party logistics provider (3PL) industry evolved
  • Services offered by 3PLs
  • Expectations of 3PLs’ customers in terms of technology and service offerings
  • The way forward

A few decades ago, it was normal practice for freight owners (manufacturers/shippers) to deliver their products to wholesalers and retailers using their own in-house fleet of vehicles. Often, products did not reach customers on time, owing to the unavailability of these vehicles, resulting in loss of opportunity and revenue, not to mention customer dissatisfaction. ...

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