Freight Fundamentals
Third-Party Logistics (3PL)
Also called: 3PL provider
Definition
Outsourced logistics services provided by a specialist that may manage transportation, warehousing, fulfillment, or distribution.
In practical terms
A third-party logistics provider can handle one activity or operate an integrated logistics program. The scope is defined by the service agreement and can expand as a business grows.
Example
A retailer hires a third-party logistics provider to store inventory, fulfill orders, and arrange delivery.