Warehouse Logistics: 3PLs get some respect from lawmakers

Patrick Burnson, Executive Editor -- Logistics Management, 8/7/2008

SAN FRANCISCO—With considerable fanfare, the International Warehouse and Logistics Association (IWLA) began celebrating the fact that it had scored a significant government affairs success in Washington, D.C. recently.

“Thanks to a massive grassroots effort by our members, lawmakers are finally taking notice of the contribution our industry is making to this nation’s economic recovery,” said IWLA spokesman, Ben Stephens.

With passage of a landmark consumer product safety law recognizing the role of a third-party logistics provider (3PL). Legislation, H.R. 4040, the Consumer Product Safety Modernization Act, now at the White House marks the first time that the term third-party logistics provider has been defined in federal law.

3PLs are specifically defined in this historic legislation that will remove toxic chemicals from toys and put a more powerful and better-funded “cop on the beat” to police the safety of consumer goods.

According to ILWA spokesmen, it also represents a fundamental shift in the federal government's recognition of the vital enterprise role played by 3PLs.

“Our members have been very active in reaching out local governments as well,” said Stephens, “to impress upon them the job-making power our industry generates.”

ILWA spokesmen added that establishing in federal law the role of the 3PL in the supply chain is critical as the domestic and global supply chain comes under increased scrutiny by legislators and regulators.

“Concerns over cargo security and product safety dominate the policy debate,” they said in a statement. “This new law reaffirms the role of the 3PL as an intermediary in the supply chain, similar to the carrier or forwarder. It sets a critical precedent as Congress turns to similar legislation for food, pharmaceuticals and cargo security.”