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What is 3PL?

3PL stands for third-party logistics. The natural follow-up question is, of course: what is third-party logistics? The term describes the logistics that companies receive when they hire a third party to manage them. You can use third-party logistics for all or parts of your logistics. 3PL can also be what you get when you hire yourself into a warehouse that is managed by another company. In these cases, you usually pay for both the space and handling of the goods. In other words, you pay another company to provide the facility, staff, equipment, security arrangements, and other logistics-related services for you.

What are the benefits of third-party logistics?

So, what are the advantages of 3PL? Perhaps the primary benefit is that you can focus more on your core business while having a reliable partner who specializes in logistics and takes care of it for you. Logistics is an important part of how customers perceive your level of professionalism, so it’s important to present yourself in the best possible way. The best approach may be to seek assistance where you need support and expertise. A 3PL company can help you develop smart solutions for warehouse and logistics management. They have been through it before and know where to start.

An additional advantage is that 3PL companies often have negotiated good deals with freight carriers. I hope you have gained a better understanding of what third-party logistics is after reading our response. Contact us if you have more questions about what 3PL is or if you would like to discuss a collaboration!