This is a company that was born with the need to support small importers and exporters because the processes are sometimes expensive. And it migrated to the fulfillment operation for companies that sell through e-commerce.
Third-party logistics (3PL) refers to outsourcing supply chain activities—such as transportation, warehousing, inventory management, and order fulfillment—to an external provider.
By leveraging 3PL services, businesses focus on their core competencies while professionals manage the logistics.
Here’s how 3PL integrates into your supply chain:
Inventory Storage: Products are stored in a 3PL-managed warehouse.
Order Processing: Once an order is placed, the 3PL picks and packs items.
Shipping: The 3PL partners with carriers to ensure prompt delivery.
Returns Management: Customer returns are processed efficiently to maintain satisfaction.
Cost Savings: Eliminates the need to own or lease warehouses.
Scalability: Supports seasonal spikes and growth without infrastructure investment.
Expertise: Access to advanced technology and optimized processes.