User:Third Party Human Logistics

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Third Party Human Logistics

A third party human logistics provider (abbreviated 3PHL) provides labor and process management to its customers. 3PHL is an innovative on-site, outsourced business model to solve contemporary problems of global competition, labor risks, labor costs, and performance management.


The 3P in 3PHL

A third party company provides services for a fixed cost. The 3P firm employs or contracts for the labor removing the burdens and risks of labor issues from the client. Traditional 3PLs may or may not work onsite of their customer’s facility. 3PHL providers do work on-site.


The H in 3PHL

While 3PL providers are more common in the marketplace, nGROUP performance partners created the 3PHL business model in 2011 due to the increased risks and costs associated with hiring, training, and retaining a workforce compromised of manual laborers. 3PHL’s are specifically responsible for the output of the workforce, including the hiring and management of staffing companies. This business model provides an added layer of protection between a company and its flexible staff.

3PHLs are designed to reduce both the costs and risks associated with a labor-intensive workforce. Through proven production practices, incentive based compensation, and technologically driven tracking systems, 3PHL’s are experts in the “human factor” that affects a company’s bottom line.


The L in 3PHL

In this business model, logistics is defined as throughput; isolating each work cell requirement from start to finish, and completing it with greater efficiency and excellence than before. 3PHLs are experts in engineering labor standards and production efficiencies and incorporate best-in-class practices. Typical production and manufacturing practices incorporated by 3PHLs include:

1. Production Floor Design 2. Total Production Maintenance (TPM) 3. Lean Manufacturing 4. 5S Methodology 5. Kaizen 6. Kanban 7. Just In Time (JIT) 8. Poka-Yoke 9. Hazard Anlaysis and Critical Control Points (HACCP) 10. Good Manufacturing Practice (GMP)

It is the responsibility of 3PHL firms to provide expert analysis and oversight of the production systems that provide a safe, efficient, and compliant-based operation that meets quality standards.


Financial Business Model

3PHL firms provide specialty oversight into production process and manage the workforce as to ensure high levels of efficiency. 3PHL firms are responsible to their clients for achieving preset goals and bill their clients based on a completed Cost Per Unit or CPU basis. Thereby, 3PHL firms are financially accountable for delivering efficiency by means of process improvements and human (workforce) improvements.