{"id":3926,"date":"2024-01-16T09:00:00","date_gmt":"2024-01-16T15:00:00","guid":{"rendered":"https:\/\/advance-realestate.com\/adblog\/?p=3926"},"modified":"2025-05-20T13:13:14","modified_gmt":"2025-05-20T19:13:14","slug":"what-is-third-party-logistics-3pl-and-how-to-choose-the-right-one","status":"publish","type":"post","link":"https:\/\/advance-realestate.com\/adblog\/en\/what-is-third-party-logistics-3pl-and-how-to-choose-the-right-one\/","title":{"rendered":"What is Third-Party Logistics (3PL) and How to Choose the Right One"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>4 Minute <\/div>\n\n <\/div>\n

For companies that rely on logistics suppliers<\/strong><\/a>, receiving, storing, and shipping inventory is crucial to their growth, especially when volatility impacts supply chain management.<\/p>\n\n\n\n

As specialization of logistics functions becomes a necessity for many businesses, especially with the e-commerce<\/strong><\/a> and omnichannel networks, outsourcing to 3PL companies has now become a trend.<\/p>\n\n\n\n\n\n\n\n


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What is a 3PL Company?<\/h2>\n\n\n\n

A third-party logistics (3PL) company is a service provider that organizes or manages several supply chain functions for other businesses.<\/strong><\/p>\n\n\n\n

These functions include brokerage, shipping, warehousing and\/or packaging of shipments, supply chain strategy, and access to technology.<\/p>\n\n\n\n

Most 3PL companies do not have assets (they do not own physical equipment), because they are only in charge of organizing logistics services. However, some 3PL companies do have assets, such as warehouses used for e-commerce.<\/p>\n\n\n\n

Companies can completely or partially outsource parts of their supply chain management (transportation, warehousing, etc.) when a 3PL company offers greater efficiency, expertise, and\/or cost reduction when compared to in-house management.<\/p>\n\n\n\n


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What Does a 3PL Company Do?<\/h2>\n\n\n\n

A 3PL company typically offers one or two specialized services for small and medium-sized businesses. For example, an all-inclusive service provider manages the entire process, from confirming an order to updating the delivery tracker. <\/strong>On the other hand, a logistics company only manages day-to-day transactions. It is important to note that not all e-commerce shipping companies offer 3PL compliance services.<\/p>\n\n\n\n

3PL compliance companies also differ from logistics service providers. Although many 3PL are dedicated to packaging, storing, and\/or distributing products, some are large enough to take on additional responsibilities. Properly organized warehouses are the key to maximum efficiency.<\/p>\n\n\n\n

When it comes to shipping logistics, it is important to distinguish between freight forwarders and 3PL transportation companies. Freight forwarders are middlemen who charge a fee to the seller to work with preferred couriers. 3PLs offer a wider range of services on a responsive scale, including transportation.<\/p>\n\n\n\n

A 3PL warehouse company is dedicated to storing, managing, and monitoring its clients\u2019 products, whether in its own warehouse or in others<\/strong>. Working with this type of 3PL companies is useful when there is a large inventory, when the warehouse has recently expanded, or when equipment needs to be freed up for other tasks.<\/p>\n\n\n\n


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Benefits<\/h2>\n\n\n\n