Third-party Logistics (3PL) Overview

3PL Logistics Guide

(the following is a summary of the article provided in the link)

Third-party logistics (3PL) refers to outsourcing e-commerce logistics processes to a third-party company, which can include inventory management, warehousing, and order fulfillment. 3PL outsourcing can result in quicker and more affordable delivery, easier scaling, more service areas, and more satisfied customers. The article also explains the five categories of 3PL companies: distribution-based, financial-based, forwarder-based, information-based, and transportation-based. The benefits of working with 3PL providers include faster and more affordable e-commerce operations, easier scaling, access to industry expertise, more affordable shipping, more shipping locations, more satisfied customers, and less risk. The article also introduces the concept of fourth-party logistics (4PL), which finds a 3PL for you and manages the 3PL’s work on your behalf.