What is 3PL
Haresh L, Student, India, Member
A third party logistics provider(3PL) is essentially a logistics company to whom a company outsources (part of) its logistical requirements
With the emergence of IT, it is now easier for companies to partner with a 3PL and focus on their core operations and improve core competencies instead of struggling with transportation on their own.
By this they can reduce their capex, expand reach, improve efficiency and streamline operations. For example, Dell partners with FedEx to deliver computers to its customers. Internationally there are logistics providers like DHL, FedEx and UPS. In India we have Gati, Blue Dart, etc who provide companies supply chain solutions.