As a recruiter for Soren, the most common question I get asked during my interviews is, “What exactly do you do at Soren?” It seems that most applicants, and maybe even you, may not know exactly what a 3PL does and why some companies choose to outsource their logistic needs. This blog will address this confusion and hopefully, by the end of it, you will have a better understanding of Soren, what we do, and why you may want to consider a career in logistics.
What is a 3PL?
3PL is an acronym and stands for Third Party Logistics. The term “3PL” was first used in the early 1970s to identify intermodal marketing companies (IMCs) in the transportation contract, which previously featured only two parties- the shipper and the carrier. IMCs became the THIRD PARTY to enter the contract and thus the 3PL was born, creating a more efficient and cost-effective way for companies to outsource their logistic needs. Legislation passed in 2008 identifying the legal definition of a 3PL as “a person who solely receives, holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.” The CSCMP Glossary defines 3PLs “as outsourcing all or much of a company’s logistics operations to a specialized company” which is exactly what Soren is- a company specializing in logistics.
Why use a 3PL?
Every shipper is looking for a strategic advantage over their competition, especially in today’s fluctuating economy and uncertain political environment. Supply chain management and execution flexibility is the main attraction leveraging 3PL services. These services can provide businesses with scalable solutions that evolve with the changing market conditions and exacerbate the constant challenges that shippers face. Our clients rely on us to provide enduring strategic oversight (rather than a quick fix) while considering variables such as capacity shortage, rising freight rates, and fluctuating government regulations. This, in turn, saves them valuable time, money, liabilities, and resources. Next month, we will explore the core reasons why companies choose to utilize 3PL’s to outsource their “non-core” services and the main benefits Soren provides for its customers.
Why work for a 3PL?
Logistics is at the heart of everything around you. Have you ever thought about how the things you shop for get to the store? Soren is responsible for coordinating and transporting goods bought and consumed every day across North America. Recent studies have reported that 65 percent of shippers are increasing their use of outsourced logistics services because utilizing a 3PL like Soren, is like adding an industry-savvy department to a business’s team equipped with an established global network and experts in the field. Are you interested in becoming one of these experts and taking advantage of this exciting and constantly evolving industry? Visit our website to learn more about our entrepreneurial, motivating, and vibrant culture and the career opportunities available within the ever-growing Soren Family!