what is 3pl in logistics

3PL stands for third-party logistics, which is an organizations long-term commitment of outsourcing its distribution services to third-party logistics businesses. A 3PL provider offers outsourced logistics services, which encompass anything that involves management of one or more facets of procurement and fulfillment activities. In other words, a 3PL warehouse provides a full range of eCommerce fulfillment services, including storage, order processing, shipping, and receiving. 3PLs are responsible for many other duties while the inventory is in their possession, such as cycle counts, labeling, inventory reporting during high turnover, and shipping notifications to buyers. They handle the entire supply chain, including picking and packing, warehouse storage, as well as shipping. The primary benefit of using a 3PL service to handle logistics is cost savings, for example, not having to maintain a warehouse or the staff to monitor supply chain operations.