3PL (Third Party Logistics)

Published by MBA Skool Team, Last Updated: April 16, 2012

What is 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.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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