What is 3PL Logistics

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3rd Party Logistics > Forum > What is 3PL Logistics

What is 3PL Logistics
Okeowo Michael
Thanks for all your articles. It's a little bit unclear to me what 3PLs are all about, are they independent logistic companies? I hope somebody will enlighten me about this. Thanks.

Hope it Clarifies
Aruna Bhatta
3PLs are independent logistics companies but can be linked to a particular company as a support.
Third party logistics are those entities who specialize in activities which smoothen the running of the supply chain pipeline and provide a wide selection of services, value-adding services and even global logistics so that wholesalers, distributors, retailers do not have to invest money to support their own amenities.

Definition 3PL Logistics
Abdullah Fuentes, Analyst, Saudi Arabia, Member
These are normally organizations known as (logistics) services providers which take a portion of corporation activities (e.g. freight forwarding) using all their resources in providing the services (manpower, equipment, etc).

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.

3PL Explanation
Michael Canella
The best way to think of a 3PL...
It is a shipping (or logistics) company which does not handle, ship or warehouse its own products (hence, "3rd party"). It does not make or manufacture anything. The products it stores and/or ships are for other companies (clients).
A 3PL company is much like a cab company, i.e. it is in business to specifically handle the transportation needs of various outside individuals on a limited, or long term contract basis.

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