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)