OLIMP
November 2, 2022
What Does 3PL Stand For?
A 3PL is an acronym for third-party logistics provider. These companies manage and consolidate the warehousing and transportation of goods for a business's benefit. This partnership allows companies to expand their logistics services to meet the demands of their customers, improve customer service, and reduce costs. In fact, more than three-quarters of shippers say that they have seen a decrease in their costs since partnering with a 3PL.

Most 3PLs have warehouses scattered throughout their network. This allows them to spread inventory across a number of fulfillment centers, facilitating faster delivery times and lower costs. Some of these warehouses require clients to manually update the order details while others integrate with e-commerce platforms. Warehouse picking staff then gather the ordered items from inventory.

When a business's order volume increases, the fulfillment infrastructure can become overwhelmed. As a result, employees will spend more time fulfilling orders and less time focusing on other areas of their business. Outsourcing these functions to a 3PL provider can free up valuable time for employees and allow them to focus on other core functions.

Today, competition among 3PL providers is intense. Not only do these companies offer a variety of fulfillment options, but they also offer a variety of prices. As a result, it is essential to shop around for the best deal. The best option is one that offers competitive pricing, but does not sacrifice on quality.