Third-Party Logistics (3PL)
What is Third-Party Logistics?
A third-party logistics, also known as 3PL, is a system where an organisation (a third party) provides logistics services to companies in need of goods distribution. A company (client) with no logistics department usually employs the help of the third-party company. In turn, the third party performs parts or all logistics related activities for the client.
Some of the activities carried out by the third-party logistics are:
- Inventory storage
- Inventory management
- Freight forwarding
- Shipping and distribution
- Customs clearance/declaration
- And more (depending on arrangement)