what is a 3pl

A 3PL, or third-party logistics, is a business that provides logistics services such as warehousing, kitting, shipping, and order fulfillment. It is an organizations long-term commitment to outsourcing its distribution services to third-party logistics businesses. 3PLs allow businesses to outsource areas of their supply chain management to gain efficiency, expertise, and/or cost savings. Some core 3PL services include truckload brokerage, less-than-truckload (LTL) shipping, and intermodal transportation. 3PLs can also provide value-added services such as returns processing, cross-docking, or kitting. They 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. 3PL contracts are long-term contracts.