Everything You Need To Know About 3pl

Everything You Need To Know About 3pl

Third party logistics, also known as 3pl, is a service that can streamline your processes and greatly improve your business outcomes. Today we’ll be exploring this concept, as well as the benefits it offers to businesses and looking at whether you should consider implementing 3pl in your company.

What Is 3pl?

As noted above, 3pl is the abbreviated name for third party logistics. This type of service allows you to outsource the management of your logistics, therefore taking the stress of managing your supply chain, delivery of product, and return of goods, out of the equation. In many cases, third party logistics providers also manage warehousing and associated distribution between storage facilities making them a full service option for those looking to stress less about the logistics of their business.

What Benefits Does 3pl Offer Businesses?


While there are many benefits to making use of a 3pl service, we believe the below five are some of the biggest;

Streamlined Processes

Because engaging the services of a third party logistics provider essentially outsources an entire arm of your business operations to a trusted partner, it also allows you to greatly streamline your processes. This means that you’ll have more time to focus on other aspects within the business such as R&D and expanding.

Less Paperwork

Another great benefit of using a 3pl service is that you’ll be able to avoid the majority of the paperwork associated with your logistics. Not only is this perfect for those who hate handling admin, it’s also an ideal way to increase accuracy in processing and individuals who are specialised in managing logistics are far less likely to make a mistake on documentation.

Lower Liability

For those who are concerned about minimising their legal liabilities, a third party logistics service is the ideal solution. Because you will no longer be handling freight and the associated risks that come with various parts of the logistics process, you’ll also benefit from decreased liability, as much of this will pass to your provider rather than your company.

Easily Scalable

Third party logistics solutions really shine when you consider how much easier they can make expansion. Rather than having to source team members and locations in each area that you wish you expand your business into, you can simply let your 3pl provider know that you would like to increase operations within that area and they will most likely have a solution. This is particularly beneficial for those looking to expand internationally but is also great for servicing new locations within your country with greater speed.

Better Pricing

Finally, because they deal with logistics for so many companies, 3pl providers tend to get the best rates on shipping, insurance, packaging and more. These lower costs for your provider will almost always translate to lower costs for your company (unless you had an extremely good deal with previous partners) and a streamlined billing process will help you stay on top of your accounts payable as you’ll simply be dealing with one regular invoice from your third party logistics provider rather than a whole collection from different companies who handle different aspects.

Should I Implement The Use Of 3pl In My Business?

So, now that you better understand what third party logistics services do, you’re probably wondering whether you should implement them within your business. While this will obviously be dependent on your specific situation, the integration of a service provider to handle this aspect of business will almost always be beneficial. We suggest taking meetings with providers who you believe could be a good fit for your business to see if this option is right for you.

So there you have it, everything you need to know about 3pl.