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Inventory Management Glossary
Third Party Logistics (3PL).

Third Party Logistics (3PL).

Definition.

Third-Party Logistics, often abbreviated as 3PLs, refers to an organization’s use of third-party services to outsource the distribution, warehousing and/or fulfillment of its products.

How does third-party logistics work?

A 3PL company handles the receiving of a retailer’s inventory and storage of that inventory. A good 3PL also handles the picking, packing, shipping and returns.

What is the purpose of third-party logistics?

A third-party logistics (3PL) provider is an end-to-end fulfillment solution. A 3PL provides benefits including reducing operating expenses and freeing up more time for retailers so they can focus on growing their business.

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