Let's Define 3PL (Third-Party Logistics)

Quick Definition

Third-Party Logistics (3PL) describes the process by which a logistics company coordinates the warehousing, order fulfillment, shipping, and distribution of products by engaging an outside firm.

3PL (Third-Party Logistics) In-depth Analysis

What is 3PL?

Third-Party Logistics, or 3PL, is when a business hires another company to handle its logistics. This includes warehousing, order fulfillment, shipping, and distribution. The 3PL company is an outside expert that helps move products from the seller to the customer.

How 3PL Works

Warehousing: 3PLs store products in their own warehouses.
Order Fulfillment: They pick, pack, and ship orders to customers.
Shipping: 3PLs arrange for delivery using their own trucks or by working with carriers.
Distribution: They make sure products reach the right place at the right time.

Why Use a 3PL?

Save Time: Businesses can focus on selling, not shipping.
Save Money: 3PLs have better shipping rates and efficient processes.
Expert Help: 3PLs know how to handle logistics problems.
Scalability: 3PLs can handle more orders as a business grows.

3PL in the Supply Chain

3PLs are a key part of modern supply chains. They help businesses deliver products quickly and keep customers happy. By using a 3PL, companies can grow faster and serve more people.

Get in Touch

Name

This field is for validation purposes and should be left unchanged.

Name(Required)

First Last

Email(Required)

Phone

Company Name(Required)

Company Website

SKUs?

Shipments per month?

Anything we should know?

Product type, skus, weight, etc.

FAQS

Who is the largest 3PL in the US?

Amazon is the largest 3PL in the United States with $140.1 billion in gross logistics revenue in 2023, significantly ahead of other providers like C.H. Robinson ($16.7 billion) and J.B. Hunt ($12.5 billion).

What is an example of a 3PL?

Examples of 3PL providers include Launch Fulfillment, which offers services such as order fulfillment, transportation management, and customized logistics solutions for various industries including supplement and health industries. Other well-known 3PL examples include ShipMonk, ShipBob, and others.

What does 3PL mean in logistics?

3PL (Third-Party Logistics) refers to outsourced logistics services that involve managing one or more aspects of procurement and fulfillment activities. It encompasses any service contract involving storing or shipping items, from single services like transportation management to comprehensive supply chain management solutions.

Who should use a 3PL?

Companies that should use a 3PL include businesses experiencing growth that exceeds their logistics capabilities, those wanting to focus on core competencies rather than logistics operations, companies seeking to expand into new markets, businesses with seasonal fluctuations in demand, and organizations looking to reduce costs through economies of scale.

Why would a company use a 3PL?

Companies use 3PLs to reduce costs through economies of scale and negotiated carrier rates, gain logistics expertise without investing in internal resources, increase operational flexibility and scalability, mitigate supply chain risks, improve customer service through faster deliveries, expand into new markets without establishing physical presence, and focus on their core business activities while outsourcing complex logistics function.

Steps to Scale Your Brand

Step 1: Foundation

Solidify Your Foundation

Establish reliable operational processes with a 3PL like Launch Fulfillment that offers 99.998% accuracy to prevent costly growth mistakes.

Step 3: Outsource

Outsource Non-core Functions

Partner with Launch Fulfillment to handle logistics so you can focus exclusively on product development and marketing.

Step 5: Optimize

Optimize Capital Resources

Take advantage of a fully optimized system of logistics and fulfillment with specialized services like kitting and FBA prep.

Step 2: Integration

Streamline Your Tech Stack

Choose a tech-forward 3PL with seamless integrations to all major e-commerce platforms to prevent data silos.

Step 4: Expansion

Expand Your Market Presence

Leverage a 3PL with multiple fulfillment centers to enable faster shipping and seamless entry into new markets.

Step 6: Repeat

Build Repeatable Growth Processes

Implement standardized procedures with your 3PL to maintain consistent customer experiences as order volume increases.

More than 3PL (Third-Party Logistics)

Third-party Fulfillment
Kitting and Assembly
Temperature-controlled Storage
Lot Tracking & Expiration Management
Multi-location Network
International Shipping
And so much more…

Free Quote

3PL (Third-Party Logistics)