3PL (Third Party Logistics)

Posted in Operations and Supply Chain Terms, Total Reads: 16620

Definition: 3PL (Third Party Logistics)

3PL (Third Party Logistics) falls under the domain of supply-chain management.

According to the Council of Supply Chain Management Professionals, 3PL refers to “a firm that provides multiple logistics services for use by customers. Preferably, these services are integrated, or bundled together, by the provider. Among the services 3PLs provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding.”

In a simpler way, 3PL essentially refers to the fact that a firm outsources the logistics part of its supply chain to a third party which is known as third-party logistics provider. Generally, these services end up integrating parts of the supply chain as they are present in a bundled form so they also consist of some services related to production/procurement of goods.

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