Third Party Logistics Singapore: An Overview, Benefits, and Use Cases

When a company grows and serves more customers in new markets with more services and products, it must decide whether to outsource its shipping and fulfillment functions. Many of these companies rely on a third-party logistics (3PL) provider to help them meet customer demand. However, not all 3PLs provide the same capabilities and services. Continue reading to discover all there is to know about working with third party logistics Singapore and the crucial business processes they assist. 

What are third party logistics in Singapore?

The management of all aspects of transferring goods from producers and distributors to the final consumer is handled by third-party logistics organizations, which provide logistics services and assist some or all components of a company’s shipping operations. In supply-chain management and outsourced logistics, a 3PL is frequently used to contract out a company’s shipping and fulfillment needs, which might include:

Transportation, Materials procurement, Warehousing, Customs Brokerage, Inventory management, Freight audit, Shipment tracking, and Payment.

Functions of third party logistics Singapore

Delivery and pickup

Receiving and shipping The management of the shipping process from beginning to end is the primary emphasis of 3PL companies. These businesses frequently offer technology, generally integrated freight management services or a transportation management system (TMS). These technologies were created to increase productivity and automate repetitive, time-consuming operations like accounting and goods payment. For greater real-time visibility and transparency throughout the shipping process, these 3PL suppliers additionally include matrix reporting, freight data management, carrier relations management, and management of carrier relationships.


The actual movement of products or services between sites is handled by transportation 3PL companies. A typical illustration is when a 3PL company coordinates the transportation of merchandise between a business and a customer. Many 3PL providers in the transportation industry frequently use other companies to carry out their partners’ tasks.


One of the most popular kinds of third-party logistics providers is warehousing. An integrated warehouse 3PL specializing in storing and delivering products and/or services is part of a company’s warehousing and transportation processes. Numerous 3PL warehouse providers provide flexible options for managing product transportation, distribution, and storage.


Numerous 3PL companies also offer wholesale and distribution services, such as manufacturing, picking and packing, outbound order fulfillment, and custom labeling delivery app. A small corporation may find it difficult to oversee the effective distribution of big product volumes; by outsourcing distribution to a third-party logistics provider, its workers may concentrate on other business duties within their areas of expertise.

Benefits of 3PL

Here are a few more typical explanations of why companies pick to work with a 3PL.

Ability to scale

Depending on the required services, a 3PL supplier may scale a company’s space, labor, and transportation needs. Manufacturers, suppliers, and others may expand in new markets more successfully and distinctively with much less difficulty. A 3PL is intended to streamline the logistical processes—areas in which you may lack expertise—and open doors for increased business expansion.

Savings in both time and money

A 3PL can significantly impact this situation since a corporation is aware that success depends on a specific degree of efficiency. A 3PL eliminates those costs and frees up your key employees to concentrate on the manufacturing, strategic planning, and operational processes that better enable business growth as opposed to allocating money and resources to building and maintaining a warehouse, figuring out how to transport goods and services, optimizing services, and keeping up with latest technologies through an in-house management model.

Makes businesses expansion easy

Expanding a firm into new markets and geographical locations, such as emerging nations, is now simpler than ever, thanks to third party logistics Singapore. Working with a 3PL allows a company to exploit new supply chains, enhance customer service, and tap into untapped markets. Such growth is now more feasible than ever thanks to distribution centers and warehouses from third-party logistics providers, who frequently integrate the appropriate security and compliance procedures into their service offerings and have gained the certification to offer worldwide services.

When Should You Take Into Account a 3PL?

Numerous factors may come into play when deciding whether a business should hire a 3PL company.

  1. Does it make sense from a financial standpoint?
  2. Do you have the necessary resources on your own?
  3. Will it improve productivity?

There isn’t a secret formula to tell you when it’s time to hire a 3PL, but certain repeating elements can guide your decision. Rising labor, production, facilities, and personnel costs may spiral out of control if a firm is expanding more quickly than anticipated (which is a terrific problem to have). Some of these growth pains might be alleviated by a third-party logistics provider without you having to use up valuable internal resources. You may avoid many logistical hassles by working with a 3PL, not to mention time and money.

Additionally, 3PLs can benefit from cutting-edge technologies. A business may obtain these technological advantages using a 3PL without making the necessary financial commitment. A significant selling point for a third-party logistics provider might be those 3PLs with in-house IT teams who create and deliver their own B2B interface, WMS, TMS, and inventory management software.

After facing ongoing inventory inaccuracies, inefficiencies, and other serious errors, many businesses partner with a 3PL. A company’s reputation may be destroyed by inconsistent inventory capacity and erratic expenses. Still, a 3PL with dependable inventory solutions can help by simplifying the flow of items for less resource use and faster delivery. But frequently, deciding whether to hire a 3PL requires you to ask yourself, Do I need to oversee these procedures internally? 


3PL suppliers may help an organization with the right transportation, infrastructure, and solutions, regardless of the business’s size, sector, or location. However, the question is whether using a 3PL is financially advantageous. Some businesses might internally possess the necessary skills and resources and never require one. Others will discover that a 3PL, in this case, may significantly reduce their logistics and fulfillment concerns and, over time, become a partner in enhancing their brand and market presence. If you require such services, then contact Raks International Pte Ltd. The company provides logistics services Singapore.