Transport/Logistics

Third-party logistics (3PL)

Third-party logistics (3PL) refers to the outsourcing of logistics operations, including transport, warehousing, and fulfillment, to an external company rather than managing these in-house.

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.

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Third-party logistics (3PL)

Sustainability

Well-to-wheel emissions

Well-to-wheel (WTW) emissions are the total greenhouse gas emissions generated across the entire energy lifecycle of a vehicle, from producing the fuel or electricity that powers the vehicle to using it for transport. It combines both upstream and downstream emissions to give a complete picture of a vehicle’s environmental impact.

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Regulatory

Corporate Sustainability Due Diligence Directive (CSDDD)

The Corporate Sustainability Due Diligence Directive (CSDDD) entered into force in mid-2024 to make companies accountable for human rights and environmental impacts throughout their supply chains. CSDDD shifts the responsibility from just “doing no harm” in your operations to making sure your entire value chain also meets minimum sustainability and ethical standards. This includes your contractors, subcontractors, and third-party suppliers.

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Sustainability

CO₂e emissions

Carbon dioxide equivalent emissions, or CO₂e emissions for short, are a standard unit used to express the total climate impact of all greenhouse gases (GHGs) in terms of the amount of CO₂ that would have the same global warming effect. This makes it easier to compare and report different types of emissions in a consistent way.

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