What is a 3rd Party Logistics Company?

3rd party logistics companies can provide a variety of services including transportation and warehousing. Companies will often outsource aspects of their business involving distribution and fulfillment to maximize efficiency and utilize available resources. 3PLs that specialize in transportation handle the shipping or transport of items on behalf of another company or customer. They are the power in the supply chain and provide valuable service at cost-effective prices.

A Does a 3PL Company Do?

3PL companies often have a niche market or specialty, but, most commonly, 3PL companies involved in the logistics and transportation provide the equipment and manpower to move product from a customer to their buyer. Valuable 3PL companies operate in a timely manner, safely, and with excellent communication with their customers.

Why Do Companies Use 3PL?

The main reason is that it is a cost-effective way of ensuring goods are transported safely and efficiently. It is usually cheaper to out-source the work than doing it in-house, particularly if the goods require special handling. 3PL companies specialize in what they do, making sure that customers get a high-grade service that is exactly right for their requirements. In many cases, 3PL companies have a global reach, enabling them to complete international order fulfillment in a way that a smaller, in-house operation might struggle with.