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3PL: Pros and Cons of Outsourcing

Published: November 18, 2008 (Issue # 1426)



  • 3PL companies offer a whole range of logistics services, from transport and storage to packaging and delivery.
    Photo: For The St. Petersburg Times

In contrast with transportation companies and warehouse operators, Third Party Logistic companies offer a comprehensive range of services. Industry experts, however, note that there are both benefits and risks associated with outsourcing logistics.

Third Party Logistics, or 3PL, is the outsourcing of logistics services. 3PL operators organize the management of the flow of goods and optimize financial and information resources for product shipment and distribution.

“A 3PL operator provides a whole range of services necessary to deliver products from producers to retailers. 3PL starts with moving the products from the production line, packaging and storage and delivering product lots to the stores,” said Alexei Gorinov, head of the sales department at Nienshants Logistics.

Antonina Amerik, head of the marketing and development department at Maxilog logistics company, added that 3PL operators also offer secondary services such as document clearance, insurance, agent services (including loans and assistance in signing contracts), consulting and outsourcing of other business processes in the client’s company.

Gorinov said that about 50 companies in St. Petersburg market themselves as 3PL operators. The market is dominated by large companies (Nienshants Logistics, Interterminal, Mega-Logistics, Relogix and FM-Logistics) and transportation companies that offer logistic services (STS-Logistics and Velts).

In addition, distribution companies use their ties with retail chains and offer logistics services, Gorinov said, as do companies that own former industrial premises in the city and in proximity to the ring road.

The benefits of 3PL are time and cost saving and a higher quality in product shipment and distribution.

“The main benefit of logistics outsourcing is the time that you save by delegating the distribution process to a specialized company. Having experience of working with various groups of products, 3PL providers can organize a better and more effective distribution process,” Gorinov said.

Logistics outsourcing does not mean that the company loses control over its goods while they are being transported.

“High-quality logistics outsourcing always includes distant management of the flow of goods. Using a laptop, the client can order additional product delivery from any place, if he unexpectedly gets an order,” Gorinov said.

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ALL ABOUT TOWN

Wednesday, Oct. 22


English teachers can expect to receive a few useful pointers today from Evgeny Kalashnikov, the British Council regional teacher, during the EFL Seminar this afternoon hosted by the British Book Center. The topic of today’s seminar is “Grammar Practice.”


Young Petersburgers will get the chance to jumpstart their careers at “Professional Growth,” a job fair and forum featuring more than 40 major Russian and international companies vying for potential candidates for future positions. The forum not only is a chance to network but also to learn more about the modern business world and to understand what it takes to get the job you want.



Thursday, Oct. 23


AmCham’s Public Relations Committee meeting is scheduled to meet this morning at 9 a.m. in their office in the New St. Isaac Office Center.


Sportsmen get their chance to stock up on all kinds of gear at the Hunting and Fishing 2014 exhibition starting today at Lenexpo. Everything from rods and reels to boats, motorcycles and equipment for underwater hunting will be on sale so that any avid outdoorsman can always be prepared.



Friday, Oct. 24


SPIBA’s ongoing “Breakfast with the Director” series continues today, featuring Tomas Hajek, Managing Director of the Northwest Division at Danone Russia. Hajek will be discussing collaborations between businesses from different cultures. The meeting is at 9 a.m. at the Domina Prestige St. Petersburg hotel and all who wish to attend must confirm their participation by Oct. 23.


Get your gong on at “Sounds of the Universe,” a concert at the city planetarium this evening incorporating six different gongs to create relaxing songs that will transport you upwards into the stratosphere. Tickets are 700 rubles ($17).



Saturday, Oct. 25


AVA Expo, the eighth edition of the event revolving around all things pop culture, returns to Lenexpo this weekend. Geeks, nerds, dweebs and dorks will have their chance to talk science fiction and explore a variety of international pop culture. Tickets for the event can be purchased on their website at avaexpo.ru.



Sunday, Oct. 26


Zenit St. Petersburg returns home for the first time in nearly a month as they host Mordovia Saransk in a Russian Premier League game. Currently at the top of the league thanks to their undefeated start to the season, the northern club hopes to extend the gap between them and second-place CSKA Moscow and win the title for the first time in three years. Tickets are available at the stadium box office or on the club’s website.



Monday, Oct. 27


Today marks the end of the art exhibit “Neophobia” at the Erarta Museum. Artists Alexey Semichov and Andrei Kuzmin took a neo-modernist approach to represent the array of fears that are ever-present throughout our lives. Tickets are 200 rubles ($4.90).



Tuesday, Oct. 28


The Domina Prestige St. Petersburg hotel plays host to SPIBA’s Marketing and Communications Committee’s round table discussion on “Government Relations Practices in Russia” this morning. The discussion starts at 9:30 a.m. and participation must be confirmed by Oct. 24.



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