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3PLs

A third party logistics (3PL) provider handles supply chain management logistics, a service that can include transportation, warehousing and delivery—or a combination of these services— but may also incorporate additional value-added services such as production or procurement. By outsourcing these functions, companies can achieve a cost savings over having to meet these demands internally.

In addition to the economic benefits, 3PLs can also deliver improved technical proficiency, through sophisticated IT systems that are often more advanced than those of the production or selling companies they serve. Since logistics is not a core business for many entities involved in global trade, the ability to turn these responsibilities over to a qualified 3PL provider allows companies to spend less time focusing on these tasks, and more time on the elements that made their respective businesses a success.

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