Third-Party Logistics 3PL

Definition

3PL describes the outsourcing of logistics processes to external service providers. Typical tasks include storage, transportation, packaging, and order processing.

Background

The term originated in the 1970s when companies began using external partners for logistics services. With the rise of e-commerce, 3PL became increasingly important.

Services provided by 3PL providers

• warehousing: Deploying and managing warehouses.
• transportation: Organization of national and international shipments.
• Order processing: Commissioning, packaging and shipping.
• returns management: Handling returns.

Benefits of 3PL

• cost savings: No investments in warehouses or vehicle fleets.
• flexibility: Adapting to seasonal fluctuations.
• expertise: Access to professional logistics solutions.

practical example

A medium-sized e-commerce company outsources its logistics to a 3PL service provider. The provider takes care of the storage, picking and shipping of the products. Thanks to scalability, the company can easily handle seasonal peaks and concentrate on its core business.