* Logistics units and businesses do not clearly understand what 2PL is?
* Does your business need to know how the 2PL model affects Logistics activities?
* And you need to know information about Logistics Enterprises in Vietnam today?
The issues raised above by individuals, business organizations, import-export or logistics in general will be by Proship in the most thorough way so you can have an overview of the supply chain. Logistics is currently developing in Vietnam.
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What is the 2PL model?
In business operations, people often mention concepts such as 1PL, 2PL, 3PL, 4PL, 5PL. These are popular models in Logistics activities, created and applied to cut operating costs and at the same time help optimize the supply chain. In Vietnam today, the 1PL - 2PL - 3PL model is widely known.
What is 2PL ? 2PL stands for the phrase "Second party Logistics" , also known as providing second party Logistics Services. This is a chain of service providers for single operations for the Logistics chain of activities. With the purpose of meeting the needs of goods owners, however, it has not been integrated with Logistics activities. That means 2PL only undertakes one stage in the Logistics chain. 2PL is the management of traditional activities such as transportation, logistics, customs procedures, payments, etc.
How does the 2PL form affect Logistics activities?
After learning what the concept of 2PL is, business customers need to clearly understand the importance of Logistics, Logistics activities as well as the effects of 2PL strategy and form on Logistics activities in general and specifically. Can:
The importance of Logistics
- Logistics contributes to the reasonable distribution of production sectors to ensure balance and sustainable growth of the entire national economy.
- Logistics helps link all modes of transportation to serve the process of circulation and distribution of goods, trade exchanges between domestic regions as well as with foreign countries, contributing to making domestic manufacturing industries development area
- Logistics activities not only make the circulation and distribution process smooth, accurate and safe, but also reduce transportation costs. Thanks to that, goods are brought to the market quickly and promptly.
Logistics activities
- Customer service
- Demand forecast
- Information in distribution
- Inventory control
- Transporting raw materials
- Manage the ordering process
- Select factory and warehouse locations
- Collect goods
- Packing, loading and unloading goods
- Classification of goods.
2PL strategy affects Logistics activities
- 2PL is a company like shipping lines, airlines, and car companies responsible for transporting products from one place to another. 2PL companies often own specialized transportation vehicles to serve their specific transportation tasks.
For example: A farm A hires a Company C to transport vegetables, eggs, etc. to supermarket B. That Company C is called 2PL.
- Currently, 2PLs can be mentioned as shipping lines Wan Hai, Maersk, Evergreen, MOL, NYK - major shipping companies in the world or airlines and land transport companies.
Note: 2PL service only undertakes one stage or single activities in Logistics for the customer company, not all.
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Conclusion : 2PL is focused on single, specialized Services, providing single Services. Typically, 2PLs are road, sea or air transporters.
Where are Vietnamese Logistics Enterprises located?
According to an overview, up to now, Vietnam has more than several thousand businesses registered to operate in or related to the Logistics field. However, reality shows that most businesses are agents, small-scale transportation companies or brokers, and warehouse rental companies (2PL). Among them, more than 75% of freight transport enterprises only have 1-5 vehicles that they actually own, operate, and exploit; Most warehouse rental companies in Vietnam do not do a good job as a unit at the 2PL level but simply operate as "landlords for rent".
Regarding the 3PL form, in reality there are only a few Vietnamese Logistics Enterprises that have the real capacity and function of a true 3PL unit. The number of businesses capable of operating at the 4PL level in Vietnam can only be counted on the fingers of one hand. This number has even decreased to 0 with the current status of the number of 5PL Enterprises in our country (including foreign enterprises).
However, with the current trend of developing the Logistics industry, Vietnamese Logistics Companies will certainly gradually improve themselves, focusing more on technology application, building and standardizing operating procedures, investing Invest in building and developing the capacity of specialized personnel. And one thing is for sure, in the near future, 3PL will be easy to reach, not just the 2PL model.
Proship has just shared knowledge related to the 2PL model and current Logistics supply chain activities If your business is interested in full package Logistics services, transportation and delivery of goods at good prices according to the correct process, you can contact hotline 0909 344 247 to receive the fastest quote.
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Ms Dung: 0939 999 247
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