3PLs

3PLs

3PLs

Scenarios

3PLs or Third Party Logistics providers can operate under a number of scenarios:
  1. A stand alone account under your name but managed by the third party.
  2. A stand alone account under their name but paid by you.
  3. A stand alone account under their name and paid by them.
  4. As a site using your pallet accounts.
  5. Using your pallet account but not a separate site - treated as part of your main site and transactions not recorded against the 3PL.
  6. As a trading partner who owes you pallets.
  7. Other options, etc.

Requirements

Whichever scenario is used it is important that pallets forms part of your agreemenent and there is no confusion over what the requirements are.  Some considerations are:
  1. Is the 3PL site shared by others.
  2. If shared, are empty pallets segragated?  How are empty pallets controlled?
  3. What pallet control system is to be used by the 3PL.
  4. Who is liable for losses?
  5. Is the 3PL required to do monthly stocktakes and hire company invoice reconciliations?
  6. Is the 3PL required to raise transactions?
  7. Can the 3PL's system integrate with your systems?

PalletWatch Control Options

PalletWatch can offer two main options if the 3PL does not operate pallet accounts.  Both options can operate without the 3PL using PalletWatch but control would be improved if they use PalletWatch.  If PalletWatch is not used by the 3PL then your users would be required to enter transactions on their behalf.
  1. As one of your sites using Depot to Depot Moves - not recommended if the 3PL site is shared by others.  This is our recommendation if the site is not shared.
  2. As a trading partner using Non Hire Moves.

As one of your Sites

  1. Depot to Depot moves would take place between their site and your other sites.
  2. Confirm Receipts would be used to help resolve any discrepancies in depot to depot moves.
  3. The 3PL would be required to do monthly pallet counts.
  4. If pallets are despatched to another party then transfer offs would have to be raised from the 3PL site.
  5. There are numerous reports showing what the expected stocktake should be and whether pallets have been gained or lost.

As a trading partner

  1. Non hire moves would be used to track pallet movements between your sites and the 3PL.
  2. Automatic Owed Equipment reports can be sent automatically to the 3PL showing the owed balance and related transactions.
  3. Monthly counts are not required given that the 3PL has to agree on the outstanding balance.
  4. The 3PL would have to email a response to your pallet controller indicating that they agree or differ with the report.
  5. If pallets are despatched to another party then transfer offs would have to be raised from your site with the transaction offsetting the 3PL's owed balance.  The offset reduces the 3PL owed balance.

    • Related Articles

    • Confirm Receipts

      Confirm Receipts Confirm Receipts can be found under Actions in the main menu. It requires that the trading partner has been selected as "Trusted". If the movement is between two sites both equipped with PalletWatch then instead of entering the ...

    • Depot to Depot Moves

      Depot to Depot Moves A Depot to Depot Move is a move between sites within the same account. A Depot to Depot move can be created by clicking on Create Docket in the main menu. A Depot to Depot Move can only be created by the sending site. When a ...

    • Owed Equipment Report

      Owed Equipment Report Owed Equipment Report can be found under Reports in the main menu and can be downloaded as a PDF or Excel A negative balance indicates that the equipment is owed to you.  The report only displays transactions where the balance ...

    • In Transit (Depot to Depot)

      In Transit (Depot to Depot) When your account has multiple sites under the one account number then you can track pallet movements between these sites by creating Depot to Depot dockets in the Create Docket menu in PalletWatch. When you do a stocktake ...

    • Restricting equipment to a trading partner

      Restricting equipment to a trading partner You cannot prevent a trading partner from transferring different equipment types on to your account but you can restrict your users from raising a docket with specific equipment, e.g. a trading partner may ...