Third-party logistics (3PL)

Definition

Third-party logistics (3PL) is outsourcing storage, packing and shipping to an external logistics partner, instead of managing it in-house. A company remains the owner of the stock, but a third party handles the physical fulfillment.

You sell, someone else delivers

A 3PL partner takes over warehouse work: receiving goods, storing them, picking orders and shipping. The company itself focuses on sales and customer relationships.

Why companies choose this

Building an in-house warehouse takes time and capital. A 3PL partner often offers faster scalability, especially with spikes in order volume or expansion into new regions.

Practical example

A manufacturer expanding into the Netherlands works with a local 3PL partner for storage and delivery, without having to open its own warehouse there.

Related terms

Fulfillment · Warehouse Management System (WMS) · Cross-docking

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