Fulfillment

Third Party Logistics (3PL)

Outsourcing logistics and supply chain operations to an external service provider.

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Updated 2025-10-01

Definition

3PL providers handle transportation, warehousing, order fulfillment, and other supply chain activities on behalf of a company.

Overview

Overview

3PLs offer scalable solutions to businesses, providing expertise, technology, and resources for efficient logistics management.

Benefits

  • Cost savings on infrastructure and labor
  • Access to technology and expertise
  • Flexible scaling based on demand

Example

An e-commerce brand partners with a 3PL provider to manage its warehouse, pick and pack operations, and last-mile delivery.

Tags

#3PL#Third-Party Logistics#Fulfillment#Warehousing#Transportation

Related Terms

Fourth-party logistics (4PL)
Logistics Provider
Delivery Management