Third-party logistics (3PL) refers to the outsourcing of distribution services to third-party logistics businesses
. These providers typically specialize in integrated operations of warehousing and transportation services that can be scaled and customized to customers' needs, based on market conditions, to meet the demands and delivery service requirements for their products
. 3PL services can include:
- Warehousing
- Inventory management
- Shipping and receiving
- Order processing
- Packing and kitting
- Reverse logistics (returns)
3PL providers can be freight forwarders, courier companies, and other companies integrating and offering subcontracted logistics and transportation services
. They can handle various aspects of supply chain management, such as warehousing, transportation, or raw material management
. The main benefits of using a 3PL service include cost savings, increased efficiency, and access to expertise and technology
. By outsourcing logistics processes to a third-party logistics provider, businesses can focus on their core competencies and scale their operations as needed
. Some popular 3PL providers include ShipBob, FedEx Supply Chain, Rakuten Logistics, and Coyote Curve
