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Abstract
Third-party logistics (3PL) providers in the electronics industry used to be just that - companies such as UPS or FedEx that specialized in shipment and delivery - but electronics was only one of many industries they served. Now, electronics distributors as well as contract manufacturers (CM) are providing or managing 3PL services. Channel players and CMs distinguish themselves from other 3PLs by adding value to electronics components and systems. Companies use 3PL providers to save on overhead - such as owning and operating their own warehouses. Increasingly, CMs are taking on 3PL duties as part of their total service offering. CMs can charge a premium for such services and become a more integral part of their customers' supply chain. Customers are also tapping into the global capabilities of large CMs. Distributors are also leveraging their global footprint to provide a one-stop shop for components and logistics.