Third-party logistics (3PL)

What does third-party logistics include?

It depends on the 3PL provider, but third-party logistics can include any of the following:

• Transportation (FTL, LTL, international shipping)
• Warehousing and inventory storage
• Picking, packing, and order fulfillment
• Returns (reverse logistics)
• Freight billing and carrier management

Why do shippers use third-party logistics?

Using a third-party logistics provider helps shippers to reduce their overheads, grow their operations, and improve delivery service for their customers. It’s especially useful for small and mid-sized companies that don't have the resources or in-house expertise to manage logistics themselves.

3PL can also be a more sustainable option as it enables consolidated shipments between companies, route optimization, and better access to low-emission transport options. Tools like carbon accounting software helps shippers and 3PL providers to easily calculate and compare emissions on a per shipment, per transport mode, or per customer basis.