What is the Biggest Advantages of 3PL

Working with a third party logistics provider offers many advantages. Let’s take a closer look at the benefits of using a 3PL.

Gain expertise and knowledge
Supply chain logistics can be complex; fulfillment, warehousing, and shipping all come with major challenges. When it comes to supply chain logistics, 3PL organizations are experts and can impart clients with their experience and connections to quickly streamline processes.

Additionally, 3PLs can give insight into issues that can come up when shipping internationally. Such issues include documentation, customs, duties, and differing shipping regulations. Working with a third party logistics organization can also relieve the stress of trying to comply with international shipping protocols.

Save time and money
Using a 3PL can potentially eliminate the need to invest in warehouse space, technology, transportation, and employees to carry out logistics processes, allowing for more focus on your core competencies.

Additionally, 3PLs can make organizations proactively aware of supply chain mistakes that could be costly and risky. By providing industry forecasting, 3PLs also help optimize inventory levels and save on inventory holding costs.

When working with a 3PL, organizations can also save time by receiving the expertise needed to carry out supply chain logistics efficiently.

Scale operations and be more flexible
When a company uses a 3PL, they are able to scale space, labor, and transportation according to current inventory. Additionally, 3PLs are often able to ease the transition between seasonal periods and industry fluctuation.

When growing into new markets, a 3PL aids growth in new regions. Typically, 3PLs are always looking for ways to improve aspects of supply chains and therefore have the tools and technologies necessary to make adjustments. Management software can analyze and monitor supply chain procedures to eliminate inefficiencies. Engaging 3PL services are likely to result in continuous improve

Assemble-to-order with Planned Orders

Assemble-to-order with planned orders is particularly useful:

If production control is managed using production orders (see Special Settings for Projects) but you do not want to create the production order along with the sales order. You can use the planned order to fine-tune planning and then convert it into a production order at a later date.
If production is controlled using Repetitive Manufacturing. The planned order is then the run schedule quantity which you can plan using the planning and control tools provided by Repetitive Manufacturing. In this procedure, the goods receipt for the material can also be posted with reference to the sales order number. Thus, the costs can also be directly assigned to the sales order even in Repetitive Manufacturing.
Assemble-to-order with Repetitive Manufacturing

Use assemble-to-order with Repetitive Manufacturing if several of the following points apply to your situation:

Production of the finished product is carried out in clear and simple steps.
The assembly is produced in a constant flow over the production lines.
Simple routings are used, or assembly can be carried out without routings.
The components can be staged anonymously at the production lines. The components are procured, for example, with KANBAN using consumption-based planning, or with the planning strategy “subassembly planning”.
You want to reduce the effort required for production control and backflushing.
Sample Scenario for Assemble-to-order with Repetitive Manufacturing

The production process is kept as simple as possible. There are only a limited number of production levels involved in producing the product. The number of components is relatively low, however, it is quite possible to produce a large number of finished products due to configuration options.
The components required for final assembly are selected via the configuration in the sales order and are staged at the production line anonymously. You can use the assembly order to carry out an availability check for the selected components. Components that are always readily available are excluded from the availability check by setting the appropriate indicator in the material master record. (order fulfillment center
The finished product is assembled without a routing and the operations are similar. The planning table in Repetitive Manufacturing provides the planner with an overview of the production rates. Here, the planner can also check capacities for the production lines and distribute the ordered quantities to the production lines with available capacity.
When production is complete, the goods receipt for the finished product is posted with reference to the sales order number – a special function exists in Repetitive Manufacturing for this. Once the goods receipt is posted, the goods are withdrawn for the specific sales order and the assembly order is deleted.
For the scenario described above, you can also work without using the planning functions of Repetitive Manufacturing. In this case, capacity planning is not carried out from the planning table in Repetitive Manufacturing, but instead, using the capacity leveling functions in capacity planning. However, you can still use the backflushing functions in Repetitive Manufacturing.